Foxconn, Wisconsin reach deal on scaled-back plant
AP, MADISON, Wisconsin
Foxconn Technology Group (富士康科技集團), the world’s largest electronics maker, has reached a new deal with reduced tax breaks for its scaled-back manufacturing facility in southeast Wisconsin, Governor Tony Evers and the company announced on Monday.
Details of the new deal were not immediately released.
The deal was scheduled to be approved yesterday at a meeting of the Wisconsin Economic Development Corp, the state’s top jobs agency, which had negotiated the initial deal with Foxconn, known as Hon Hai Precision Industry Co (鴻海精密) in Taiwan.
Hon Hai Precision Industry Co chairman Young Liu speaks to reporters in Taipei yesterday after an awards ceremony for the top 100 global innovators organized by Clarivate Analytics.
Foxconn to receive $80 million, not $3 billion, under new deal with Wisconsin journaltimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from journaltimes.com Daily Mail and Mail on Sunday newspapers.
MITCHELL SCHMIDT
Lee Newspapers
MADISON â Foxconn Technology Group would receive $2.77 billion fewer in state tax dollars and only aims to employ about 11% as many people in Wisconsin compared to its original goal, according to a new agreement between the state and the Taiwan-based company for its downsized manufacturing facility in Mount Pleasant.
The new contract, which was passed by the Wisconsin Economic Development Corp.âs board of directors on Tuesday, would provide Foxconn with $80 million in performance-based incentives as long as the company hires 1,454 employees across Wisconsin (not solely in Racine County) with an average wage of $53,875 and makes a capital investment of at least $672 million by 2026. It also represents a significant decrease from the $2.85 billion in state tax credits originally pledged to the company in its 2018 contract with the state.
A new agreement between Foxconn Technology Group and the state announced Tuesday dramatically scales back the number of jobs the company promises to create to only 1,454 and reduces the capital investment to a fraction of what was originally promised.
In return, Foxconn stands to receive far less state cash.
The agreement allows for Foxconn to get a maximum of $80 million in tax credits compared to the previous agreement which would have granted the company $2.85 billion in state money if the company met certain hiring and capital investments.
Foxconn four years ago promised to bring 13,000 high-tech jobs to Wisconsin and create a massive Racine County facility that former Gov. Scott Walker and President Donald Trump, both Republicans, heralded as transformational for the state s economy.
Foxconn, state agree to new deal; Foxconn expecting to hire up to 1,454 by 2025 The company originally promised to hire 13,000 people msn.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from msn.com Daily Mail and Mail on Sunday newspapers.