Home Business The Chinese company chooses the Western Ohio plant for $ 916 million

The Chinese company chooses the Western Ohio plant for $ 916 million


Aerial view of Sydney Industrial Park, Ohio. Image courtesy of the Sidney-Shelby Economic Partnership

SEMCORP Advanced Materials Group has selected Sydney, Ohio, as the site for a $ 916 million production facility that will produce separator film, a key component in batteries for electric vehicles. The 850,000-square-foot manufacturing plant will create nearly 1,200 jobs with an annual salary fund of $ 73 million.

The facility will be the largest foreign direct investment in Ohio and one of the largest investments in the history of the Chinese company. It will also make SEMCORP the largest manufacturer of separator film for EV batteries in the US. As the push for more electric vehicles in the U.S. grows, SEMCORP products will be used by leading EV battery manufacturers across North America.

The company also considered Texas before deciding on Sydney, located in Shelby County, about 35 miles north of Dayton, Ohio, in the western part of the state.

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James W, vice president of SEMCORP’s global projects group, said in a prepared statement that the company chose Sydney because of the state’s impressive commitment to vocational education, readiness for a large-scale project such as SEMCORP, strong work ethic in the region and proximity to key customers.

Shelby County is part of the I-75 corridor with four interchanges within the city of Sydney. I-70 is 30 minutes south of Sydney. With access to both interstate highways, Sydney is a day’s drive from most major cities in the East and Midwest. There are two airports, Sydney Municipal Airport and Dayton International Airport, as well as rail access through the region.

Tax benefits

State and local incentives, including tax breaks, have also helped sweeten the deal in Ohio. In March, the Ohio Tax Service approved a 15-year tax credit of 2.1 percent, estimated at $ 22.7 million, which requires SEMCORP to operate the plant for at least 18 years.

The city of Sydney recently approved an agreement on tax credits for job creation and the business zone, which gives SEMCORP a 15-year tax credit of about $ 1.2 million. That could rise to $ 1.5 million a year if the company creates more jobs than originally thought. Dayton Business Magazine. The business magazine reports that Sydney is also making improvements to roads and infrastructure in the area and has received $ 2 million in grants from the Ohio Department of Transportation and the Ohio Department of Development for the work.

The facility will be built in Sydney Industrial Park, Ohio, with an area of ​​250 acres, near Milkrick and Kutcher roads.

Jim Hill, executive director of the Sidney-Shelby Economic Partnership, said SEMCORP would acquire the entire site and “plans to begin construction as soon as possible.” The plant could be completed by next year, reports Dayton Daily News.

Hill said about half of the site will be developed in the first phase of the project. “The second stage will be held on the site, which may take place later,” he added.

Ready for development

The industrial park has been designated for major industrial development since 2016 and has been authenticated, meaning it is eligible and ready for development, by the JobsOhio SiteOhio program in 2021. Authenticated site status ensures that the site has no damage that can slow or stop development.

“Our strong manufacturing history, active workforce development initiative and well-managed SiteOhio Authenticated Industrial Park have been significant factors in SEMCORP’s decision,” Hill said. Representative of commercial property. He noted that the county’s annual output exports are $ 7.1 billion, and Shelby County is the number one per capita in terms of employment in the state.

The Sidney-Shelby Economic Partnership has joined a group of state, local and economic experts who have teamed up to demonstrate why Ohio was the best place to invest in SEMCORP, J.W. P. Nausif, President and CEO of JobsOhio. Officials from Sydney, Shelby County and the Dayton Coalition for Development were also part of the effort.

SEMCORP’s decision to locate in Sydney was made almost four months after Intel unveiled plans to build Ohio’s massive central manufacturing campus an initial investment of $ 20 billion which could eventually reach $ 100 billion. Located east of Columbus in Leaking County, the company will build several semiconductor plants on nearly 1,000 acres.

Hill said the selection of sites for the SEMCORP project began in Sydney in April 2021, long before Intel’s announcement.

“But Intel’s decision has strengthened Ohio’s position as a leading manufacturing leader,” Hill said CPE.

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