News Summary
Lancaster County Council has authorized a 20-year tax incentive deal with Atlas Copco Compressors to aid their expansion by establishing a 400,000-square-foot distribution center. This project will invest $41 million and create a minimum of 125 jobs in the next five years, while generating an expected $22 million in revenue for the county. The facility will primarily store imported air compressors, enhancing the local economy and job market significantly.
Lancaster, South Carolina – The Lancaster County Council has approved a significant 20-year tax incentive deal with Atlas Copco Compressors, a move aimed at supporting the company’s expansion in the region. This agreement will facilitate the establishment of a new 400,000-square-foot distribution center that is expected to enhance the local economy by providing new job opportunities and generating substantial revenue.
The tax incentive deal entails a negotiated fee substitute for taxes along with credits tied to performance benchmarks. Atlas Copco is committed to investing $41 million and creating a minimum of 125 jobs within the next five years, projecting a total investment of $51 million with the expectation of generating 163 jobs in the same timeframe. Lancaster County plans to implement $5.9 million in tax credits over the duration of the agreement while anticipating around $22 million in revenue from this ambitious project.
The facility’s primary function will be to store imported air compressors that are mainly sold to commercial users. The expansion project involves relocating and consolidating existing operations from another state, but it will not impact Atlas Copco’s considerable activities in York County. Economic development director Brian Fulk has commented that this offer is in line with previous large-scale projects supported by the state in Lancaster County.
Atlas Copco, a well-established Swedish company with a global workforce exceeding 50,000 employees, generates more than $16 billion in annual revenue. In the Rock Hill and Charlotte region alone, the company employs about 1,000 individuals. Further underscoring its commitment to the local area, Atlas Copco’s compressed air and gas headquarters have been situated at the Lowenstein Building in Rock Hill for the past five years.
The average wage for the new positions at the planned facility is projected to be $32 per hour, with unskilled positions offering an average of $22 per hour. According to Lancaster County data, the average weekly wage across all industries is $1,205, equating to approximately $30.13 per hour. Of the prospective jobs created, up to 50 are expected to be new hires, further benefiting the local job market.
Atlas Copco has been a longstanding presence in Rock Hill, having moved its Chicago Pneumatic brand to the area in 1997. The company holds a rich history of investing in local developments and commemorating significant milestones, including celebrating its 150th anniversary this year. Operating globally in over 180 countries, Atlas Copco maintains a strong focus on manufacturing-related industries in North America, and is actively involved in research and development to ensure a steady supply of innovative products.
Paul Humphreys, vice president of communications for North America, emphasized that the company’s success hinges on ongoing investment in new product development, which aligns with its strategic focus. The expansion of its operations in Lancaster County not only marks a pivotal investment for Atlas Copco but also presents a considerable opportunity for employment and economic growth in the area.
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Additional Resources
- Herald Online: Lancaster County Council Approves Tax Incentive Deal
- Wikipedia: Lancaster County, South Carolina
- Atlas Copco Compressors Announcement
- Google Search: Atlas Copco
- Herald Online: Atlas Copco Job Creation
- Google Scholar: Economic Development Tax Incentives
- Encyclopedia Britannica: Tax Incentive
- Google News: Job Creation in Lancaster County
