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TAMPA — Hillsborough County Commissioners are expected Wednesday to consider granting a new Siemens joint venture a seven-year tax break if the German manufacturer elects to develop a new $130 million, high-tech factory in the county.
If Siemens and partner Chromalloy Gas Turbine Corp. decide to develop their new production plant in Florida, the move would create “up to 350 jobs,” according to a Siemens press release issued in Germany last month.
County officials also will consider a resolution that would provide the new joint venture with $1.05 million, matching a state "Qualified Target Industries Tax Refund" contribution. The county contribution would be spread out over 10 years, beginning in fiscal year 2019, according to the commission's agenda.
The plant, which is slated to break ground later this year in one of “multiple Southern states” the two companies are considering, would make turbine blade and other components for Siemens gas turbine power generation.
Advanced Airfoil Components LLC, as the Siemens and Chromalloy joint venture will be known, is expected to begin production in its new manufacturing facility by the end of 2018, the companies say.
Siemens officials could not be reached for comment, and the companies did not specify what other states are being considered or when a final decision on location would be made.
The two companies have worked together for years, with Chromalloy supplying Siemens various parts and equipment.
“Continuing to build our partnership is very important and shows the value we place in each other's capabilities and expertise,” says Carlo Luzzatto, president of Palm Beach Gardens-based Chromalloy.
The potential $2.5 million county ad valorem tax break — $361,326 annually through fiscal year 2028 — comes as state leaders are debating the need for economic incentives to lure new companies to the state and compete with neighboring states.
Advanced Airfoil's request also comes just weeks before the start of the state's new fiscal year, when Florida's Enterprise Florida is scheduled to be gutted of its ability to provide incentives.
If approved, Hillsborough County officials will formally consider Advanced Airfoil's tax break request during a public hearing June 21. Under a proposal, the county would receive 50% of its share of ad valorem taxes annually.
When the seven years ends, Hillsborough County would receive “the full annual County share of the new ad valorem revenue,” according to a county commission agenda item published in advance of the June 7 meeting.
“The decision to form a joint venture and a new production facility continues our strong commitment to the U.S. as a business location,” says Willi Meixner, Siemens Power and Gas Division CEO.
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