Siemens AG eyes Fort Worth: A $133 million manufacturing venture

Fort Worth, Texas - The Fort Worth City Council is set to review a proposed tax abatement that could lead to Siemens AG establishing a $133 million manufacturing plant in the city.

This would potentially introduce 715 new job opportunities.

Siemens AG, which reported a commendable revenue of $79.3 billion in 2022, plans to set up a cutting-edge manufacturing hub at 7200 Harris Legacy Drive, located in Carter Park East. This establishment will focus on the production of essential electrical components, namely low-voltage switchgear and switchboards.

Fort Worth's proposed tax incentive involves a ten-year tax reduction, covering up to 70% of the incremental property-related taxes, approximated at $6 million in value. This concession, however, is bound by Siemens' commitment to uphold an average annual salary base of $63,000. Non-adherence could negate the annual tax benefit.

The approved proposal is anticipated to generate an added $2.6 million in tax revenue for Fort Worth. Siemens has delineated its investment plan, allocating $133 million: $70 million is dedicated to property enhancements by 2024, and the residual $63 million is designated for business property-related expenditures by 2025.

Employment-wise, Siemens aims to onboard 167 full-time personnel by 2024, ramping up to 715 by 2026. The projected average salary for these roles is expected to surpass $63,000. In a community-centric initiative, the firm commits to allocating 15% of construction-related costs to businesses owned by minorities and women. A 10% grant reduction will apply if this criterion is unmet.

An internal city evaluation suggests that the financial incentives extended to Siemens will be recouped in roughly 6.5 years. Robert Sturns, the city's economic development director, shared insights into Siemens' meticulous site selection journey during an August work session, indicating that "This will be the first step in ensuring that Fort Worth is a selected site..."

Siemens Industry Inc., a key subsidiary of Siemens AG, is esteemed for its industrial automation and energy management solutions. The company has already made its mark in Grand Prairie with a facility specializing in low-voltage circuit breakers. Demonstrating its regional dedication, Siemens infused $10 million in 2022 to expand this plant.

According to Siemens' official website, the corporation employs about 1,800 individuals in North Texas, operating nine facilities, including its Grand Prairie unit and the Plano-based global headquarters for Digital Industries Software. A June announcement highlighted Siemens' intention to invest a staggering $2.17 billion to bolster its manufacturing capacities globally.

City records indicate a rising global demand for low-voltage switchgear, propelled by factors such as construction uptrends, manufacturing expansion, and sustainable energy growth.

The City Council has organized a public hearing for Sept. 12 to consider the introduction of an incentive reinvestment zone. Following this session, a conclusive vote on the proposal is anticipated.

Credit: Fort Worth Report, Dallas Metro News