The previously planned huge display screen plant that will be worth $10 billion and is scheduled to be set up the city of Racine of Wisconsin State is all set to get a kick start as the Governor of the state – Scott Walker, signed the final contract with Foxconn Technology Group Chairman Terry Gou.
In the eventuality that Foxconn invests $10 billion in setting up of the new display screen factory and campus near Racine, the Wisconsin government will give incentives worth $3 billion under the agreement.
In turn, 13,000 employees would have to be hired by the manufacturing giant for the company to avail the full benefit of the incentive.
If media reports are to be believed, housing, stores and service businesses would be constructed in a virtual village in an area of at least 4 square kilometers and hence this investment plan is being labeled by Walker as “the largest economic development project in the history of Wisconsin.”
Together with Foxconn Chairman Terry Gou, the company’s plans to set up the factory in Wisconsin was announced by U.S. President Donald Trump at a White House event in July.
Noted for manufacturing iPhones in China, Foxconn is considered to be the largest contract electronics manufacturer in the world. Liquid crystal display panels that would be used in televisions, computers and other electronic items would be manufactured at the Wisconsin plant by the company.
Earlier, the way for conducting negotiations for the signing of a final contract between the company and the governor’s administration was cleared after Walker singed a legislation that authorized the Foxconn deal on Sept. 17 at Gateway Technical College in Sturtevant.
According to the memo of understanding between the two parties in the deal, it was to be finalized by Sept. 30.
There were speculations that the government of the state would make a payment to the company of up to $2.85 billion in cash would be made throughout a period of more than 15 years. This incentive was being planned to partially offset 17% of the qualifying payroll costs for the company in addition to 15% of all of the capital costs for the company of setting up the factory up to $10 billion which would enable the employment of as many as 13,000 local people. It is also expected that the government authorities would waive off some environmental rules as well as about $150 million in sales taxes payable for the construction materials that would be required for the plant.
(Adapted from news.xinhuanet.com)