Siemens may open a $133M plant in Fort Worth with 715 jobs
The Fort Worth City Council soon will consider a tax abatement that could lead to Siemens AG opening a $133 million manufacturing plant with 715 jobs in the city.
The German multinational corporation, which reported a revenue of $79.3 billion in 2022, has plans to build a manufacturing plant at 7200 Harris Legacy Drive at Carter Park East to produce low-voltage switchgear and switchboards. Switchgear and switchboards are used in the transmission of electricity.
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The city of Fort Worth is proposing a 10-year tax abatement of up to 70% of incremental real and business personal property – an estimated total value of $6 million. If the company is unable to meet the minimum average annual salary requirement of $63,000, the annual abatement would be forfeited. If approved, the project would generate a net of $2.6 million in new taxes for Fort Worth. For the Fort Worth plant, Siemens is proposing a capital investment of $133 million – $70 million in real property improvements by the end of 2024, and $63 million in business personal property by January 2025.
The company has also committed to 167 full-time jobs by the end of 2024, with plans to ramp up to 715 jobs by the end of 2026.The average annual salary for these jobs would be more than $63,000. Fifteen percent of hard and soft construction costs will be committed to minority- and women-owned businesses. If Siemens is unable to meet that construction requirement, the grant will be reduced by 10%, according to the city.
In a report, city staff said the incentive would likely be paid back in about 6.5 years.
Siemens has been working for several months on a site selection process, Robert Sturns, economic development director, told the council at the Aug. 15 work session.
“This will be the first step in ensuring that Fort Worth is a selected site, but we still have a couple of other approvals that we would have to work through with them as part of the process,” he said.
Siemens Industry Inc. – a subsidiary of Siemens AG – provides products, systems, and services for industrial automation, drives, motors and other energy management systems. The company already has a manufacturing presence in Grand Prairie, where it builds low-voltage circuit breakers.In 2022, Siemens invested $10 million to expand the Grand Prairie plant.Siemens has nearly 1,800 employees in the North Texas area, according to the company’s website. The company has nine facilities here, including its Grand Prairie manufacturing hub, and its Plano-based Digital Industries Software global headquarters. In June, Siemens said it would be investing $2.17 billion, primarily to boost manufacturing capacity in Germany, the U.S. and Asia.
The current global demand for low voltage switchgear has skyrocketed, in part due to increased construction, the expansion of manufacturing operations, and the growth of sustainable energy, according to a city report on the Siemens plant.
The Fort Worth City Council will hold a public hearing to create the incentive reinvestment zone on Sept. 12, after which the council will vote on the proposal.
Bob Francis is business editor for the Fort Worth Report. Contact him at [email protected]. At the Fort Worth Report, news decisions are made independently of our board members and financial supporters. Read more about our editorial independence policy here.
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by Bob Francis, Fort Worth Report August 15, 2023
Robert Francis is a Fort Worth native and journalist who has extensive experience covering business and technology locally,nationally and internationally. He is also a former president of the local Society... More by Bob FranciscommercialFor noncommercial digital publications:For noncommercial print publications: