Rosemont, Illinois-based Haribo of America Inc. could receive up to $21 million in state tax credits as it builds a 500,000-square-foot gummy bear production facility in Pleasant Prairie.
To earn all of the credits by 2028, the company would need to make a $220 million capital investment, create 385 jobs, invest $2 million in worker training and make $200 million in purchases from Wisconsin suppliers.
In addition to its announced project, the company also plans to invest more than $300 million over the next 12 years and create another 720 full-time jobs, according to a Wisconsin Economic Development Corp. staff review of the project. The review notes the company is planning to buy enough land to accommodate future expansion, including distribution, sales and corporate business functions.
The German candy maker Haribo’s initial plans for a North American production facility were celebrated as one of the largest foreign investments in state history when they were announced in March, only to be dwarfed months later by Foxconn Technology Group’s planned $10 billion investment.
While Foxconn is receiving tax credits equal to 17 percent of its wages and 15 percent of its capital investment, Haribo is receiving credits at the 7 percent and 10 percent levels detailed in the state’s current enterprise zone tax credit program.
At the time of the announcement, Mark Hogan, Wisconsin Economic Development Corp. secretary, declined to discuss the incentive package offered to the company until a contract was signed.
The contract itself was not signed until the end of June, according to a copy obtained by BizTimes Milwaukee under Wisconsin’s open records law.
Haribo is still in negotiations with Pleasant Prairie to purchase land in the Prairie Highlands Corporate Park west of I-94, between Highways 165 and 50. The village announced plans in February to purchase 458 acres from Abbot Labs to establish the new corporate park.
“Having a global company like Haribo establish operations here will have a significant economic impact on Kenosha County, southeastern Wisconsin and the entire state,” Hogan said. “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.”
The tax credits Haribo is eligible for are primarily for making capital expenditures, as the company plans to spend $120 million on its plant and another $100 million on equipment. The company would be eligible for $15.3 million in tax credits for the spending.
The job creation credits would kick in during 2019, with the company needing to have 50 cumulative new full-time employees to receive $70,000 in credits. Ultimately, Haribo would be eligible for $1.7 million in job creation tax credits.
Haribo is expecting to create 182 production jobs, with an average starting wage of $15.84 per hour, the equivalent of nearly $33,000 per year. Another 120 jobs would be in maintenance and warehouse work, with an average starting wage of $24.04 per hour, or roughly $50,000. The company would also have 83 management employees earning nearly $90,000 per year as a starting wage.
Haribo also plans to pay 100 percent of individual and family health insurance costs, along with dental, vision, mental health, prescription drug subsidy, paid sick leave, 401(k) and free snacks and beverages.
In addition to capital expenditure and job creation tax credits, Haribo could receive $2 million for spending on a job training program and another $2 million for spending with Wisconsin suppliers.
