Haribo to receive $21 million in tax credits from Wisconsin
Incentive part of package deal for gummy maker to build mega plant in southeast portion of the state.
The Wisconsin Economic Development Corp. (WEDC) announced last week that it had reached an incentive agreement with Haribo of America, the U.S. subsidiary of the German-based gummy manufacturer, tied to the construction of a 500,000-sq.-ft. plant in Pleasant Prairie, Wis.
WEDC will be supporting the project by providing up to $21 million in performance-based state income tax credits through 2028. Haribo of America can earn the tax credits based upon the number of jobs created; the amount of capital investment it makes; the amount it spends on purchasing equipment, goods and services from Wisconsin companies; and the amount to be spent on employee training, WEDC says.
The new plant is projected to employ about 400 workers and marks the first time that the multinational manufacturer of gummy bears will build a facility in North America.
“Having a global company like Haribo establish operations here will have a significant economic impact on Kenosha County, southeastern Wisconsin and the entire state,” says Mark Hogan, WEDC’s secretary and ceo. “This is another example of how Wisconsin is attracting companies from around the world because of our business-friendly climate, dedicated workforce, world-class education system and reliable infrastructure.”
In addition to the 385 candy manufacturing jobs, an economic modeling study estimates the expansion could indirectly generate 381 additional permanent jobs in the region. Those 766 new jobs could generate up to $8.4 million in state income tax revenue over a five-year period, the WEDC projects.
Currently, Haribo is in negotiations with the village of Pleasant Prairie to secure the property near I-94 for the new facility. The new plant is projected to open in 2020.