Panasonic Selects Kansas as Automotive Battery Mega Factory | Tech Talk & Innovation

Topeka, Kansas (AP) — Panasonic in Japan has selected Kansas as the location for its multi-billion dollar megafactory to manufacture batteries for electric vehicles for Tesla and other automakers. Provided a private business.

The company and Governor Laura Kelly announced a new project on Wednesday. Just hours after Kelly and eight top Kansas parliamentary leaders approved an incentive package worth $ 829 million over a decade.State had I created a new program The Panasonic project provides incentives that can reach over $ 1 billion in just five months.

According to Kansas Commerce Secretary David Toland, state officials expect the new plant to have about 4,000 workers, and Panasonic is the state’s “top 20, easily” in terms of size. Will be a private employer. He and other officials believe that suppliers and other local businesses create up to 4,000 new jobs and have 16,500 temporary construction jobs.

The company announced that it will invest about $ 4 billion in a plant in Desoto, Kansas, which has a population of about 6,000, 30 miles (48 km) southwest of Kansas City, Missouri. The town is trying to redevelop a long-abandoned military ammunition factory.

But Jerry Moran of the United States in Kansas also suggests the importance of the country as the project reduces its reliance on manufactured goods in the United States.

“It will improve our work capacity and our national security,” Moran told about 250 state officials and business leaders who gathered for Kelly’s announcement and subsequent reception. I said in my remarks.

The White House also characterized the project announcement as part of an effort to provide a safer supply chain to the United States. “The future of transportation is electricity,” Brian Deese, chairman of the National Economic Council, added in his statement.

The landing of the Kansas project has been a huge success for Democrat Kelly, who is facing a tough reelection race this year. The announcement will also be made when Kansas is full of cash and the incentive package can absorb the potential financial impact on school and state programs.

The announcement ended with more than five months of secrecy in which Kansas authorities were required to sign a nondisclosure agreement to learn more about Panasonic’s plans. Legislators approved a new incentive program in February, but state officials did not reveal who would receive the benefits.

Kelly and the legislative leaders met in secret for 45 minutes on Wednesday to review the details of the incentive package and then approve it in a brief public session. They did not name the company after the meeting.

Kansas was competing with Oklahoma.Tesla is building an electric car factory in Texas, and Panasonic Joint operation of battery factory In Nevada.

Oklahoma Senator Roger Thompson said he helped put together a package of $ 700 million incentives for the state and learned on Tuesday that Kansas had landed the project.

“Oklahoma may still be running, as they may build another facility in Oklahoma,” he said.

In a Wednesday announcement, Panasonic’s vice president’s aide refused to let reporters answer questions, including questions about whether Oklahoma could still land plants.

After the announcement, Kelly defended the secrets surrounding the project for months.

“We worked on this project in a very professional and very collaborative way and did what we needed to keep the company confidential,” Kelly told reporters. .. “That’s how business works.”

Earlier state estimates said Panasonic’s new plant would pay an average of $ 50,000 a year, but this month’s Wichita State University survey found that figure at $ 62,000. Both are well above the median Kansas income for individuals under $ 32,000.

Meanwhile, the same law setting up a new Kansas incentive program also requires a 0.5 percentage point reduction in corporate tax rates for all large transactions closed by the state so that all businesses can benefit. I am. If the two deals are closed, the company will save about $ 100 million annually and the state’s highest rate will drop from 7% to 6%.

Proponents of the new program claimed that Kansas lost to other large-scale projects because it couldn’t provide enough incentives.

Ohio offered earlier this year Intel Corporation’s incentives are worth about $ 2 billion to secure a new $ 20 billion chip manufacturing plant. December Michigan Parliamentarian Approved $ 1 billion incentive, Two-thirds are for factory General Motors to assemble batteries for electric vehicles.

But Wisconsin Reduced incentives For the electronics giant Foxconn. It was supposed to invest $ 10 billion there and create 13,000 jobs, but the current deal is about 1,450 jobs, with an investment of $ 672 million by 2026.

Murphy reported from Oklahoma City, Oklahoma.

Follow John Hannah on Twitter:

Copyright 2022 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

Panasonic Selects Kansas as Automotive Battery Mega Factory | Tech Talk & Innovation

Source link Panasonic Selects Kansas as Automotive Battery Mega Factory | Tech Talk & Innovation

Related Articles

Back to top button