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OGDEN, Utah (AP) -- The expansion plans of two manufacturing firms could bring nearly 300 new jobs to Weber County, city and state officials say.
Kimberly-Clark Corp. has begun construction on a 87,000-square-foot expansion of its existing "Huggies" diaper manufacturing plant in Ogden, plant manager Phillip Senn said.
About 40 full-time positions will be added once construction is complete in January 2007.
Last year Kimberly-Clark announced it would cut some 6,000 jobs nationwide as part of a three-year restructuring effort. But the Dallas-based company's decision to expand in Ogden is part of an overall plan to step up investments in targeted growth areas, Senn said.
And the Columbia, Md.-based U.S. Foodservice Inc. could also be adding 225 jobs to an existing Utah workforce of about 250.
In talks with state and local officials for about six months, the company has been offered $2 million in tax incentives from the Governor's Office of Economic Development to relocate its distribution operations from Clearfield, Utah to Ogden.
The second-largest food distributor in the nation, U.S. Foodservice has discussed plans for construction of a $29 million distribution facility in Ogden.
"We've already offered them a tax increment incentive for the project," Ogden Mayor Matthew Godfrey said. "We just needed the state component to make it all work. All indications are that with this package, we will be able to get them."
Company officials could not be reached for comment Friday.
To qualify for state tax incentives, U.S. Foodservice would have to guarantee salaries not less than $41,000, or 150 percent of Weber County's current median wage of $21,500, according to Jason Perry, executive director of GOED.
The deal could bring more than $73 million in wages and $8.8 million in state tax revenue to Utah over the next 10 years, Perry said.
"We're waiting for them to respond," said Perry. "These incentives are meant to ensure that they provide a good economic base for the city and the county."
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Information from: Standard-Examiner, http://www.standard.net
(Copyright 2006 by The Associated Press. All Rights Reserved.)
