An announcement at the White House made it official, Foxconn will be building a $10 billion manufacturing in southeastern Wisconsin that will employ up to 13,000 workers. The manufacturing site, known as Wisconn Valley, will be one of the largest manufacturing campuses in the world, large enough to hold 11 Lambeau Fields. The estimated economic impact of the Foxconn factory is $7 billion annually.
“Why build it here? TV was invented in America,” Foxconn CEO Terry Gou explained. “Yet America does not have a single LCD plant to produce a complete AK system. We are going to change that. It starts today with this investment in Wisconsin.”
The cost of bringing Foxconn to Wisconsin is $3 billion over 15 years in tax credit incentives, $200 to $250 million per year, provided the company meets the job creation and capital investment targets:
- Up to $1.5 billion in state income tax credits for job creation
- Up to $1.35 billion in state income tax credits for capital investment
- Up to $150 million for the sales and use tax exemption (sales tax holiday)
A special session of the legislature will be called to approve the deal.
In figures released by the Wisconsin Economic Development Corporation, with estimates by Ernst & Young, the total payroll of the facility will be $700 million when fully staffed. The average wage will be $53,875 per year plus benefits. In addition, construction of the plant will support 10,000 construction jobs over the next four years and 6,000 indirect jobs. The Foxconn project will also bring at least 22,000 indirect and induced jobs.
Of the $10 billion to be invested in the plant, $5.7 billion will be spent on construction. Construction is expected to generate $348 million in state and local tax revenues.
The Foxconn project when completed is expected to generate $181 million in state and local tax revenues annually, including $60 million in local property taxes.
At the White House announcement, Gou said that he met with President Donald Trump three times to discuss bringing jobs to the United States. “Each time you have emphasized the importance of manufacturing in America,” Gou said. “And providing high-skilled jobs for American workers. I feel confident to say this is a win-win strategy.”
“This is a great day for America. This is a great day for Wisconsin, and it’s a great day for Foxconn,” Governor Scott Walker said at the announcement. “Today we’re announcing the single largest economic development in the history of the state of Wisconsin and one of the largest in the history of this country.”
Walker thanked Trump for his involvement in the Foxconn deal. “Because as Terry alluded to, the president in late April met with Terry and his team,” Walker said. “The next day, a number of our folks from Wisconsin gathered together in the office of the Chief of Staff Reince Priebus, who’s a fellow Cheesehead, and we started this great journey together.”
House Speaker Paul Ryan, R-Janesville, also thanked Trump for his involvement. “I can remember the day when Reince called me after they were in Kenosha at Snap On Tools, Scott just mentioned this story, and seeing the space of some of our shuttered factories,” Ryan said. “Talking about how the president was so focused on making sure, not only that we bring manufacturing jobs back to America, but that we bring manufacturing jobs back to Wisconsin.”
Ryan also thanked Walker, “the quarterback of this effort.”
“Governor Walker quarterbacked this effort,” Ryan said. “Under Governor Walker’s leadership we have seen Wisconsin manufacturing make a huge comeback and this is the topper of all toppers.”
During his remarks, Trump said last November’s election was responsible for the Foxconn development. “To make such an incredible investment, Chairman Gou put his faith and confidence in the future of the American economy,” Trump said. “In other words, if I didn’t get elected, he definitely would not be spending $10 billion.”
Trump also praised Walker. “Governor Walker has been so tremendous from the first time we announced that Terry even had a small amount of interest in going into this country someplace,” Trump said. “And, you know, when you give that to Governor Walker, it’s pretty much of a done deal.”
There will be an additional announcement ceremony in Wisconsin Thursday late afternoon at the Milwaukee Art Museum.
The announcement Wednesday was anticipated for over a month since the possibility of Foxconn building the manufacturing facility was first mentioned publicly by President Donald Trump during a speech in Milwaukee on June 13. “Just backstage, we’re negotiating with a major, major, incredible manufacturer of phones and computers and televisions. I think they’re going to give the governor a happy surprise very soon,” Trump said.