February 14, 2011

JBS gets US$1.8 million to develop beef plant

JBS USA will obtain US$1.8 million in tax breaks from the state of Utah to expand its beef plant in Hyrum, Utah as it plans to use more than US$30 million for developing the plant, according to the state's Office of Economic Development Board.

JBS will offer wages in excess of 100% of the local county's average wage, including full benefits.  New state wages paid over the 10-year life of the incentive will exceed US$115 million and the state expects to receive more than US$8.7 million in new taxes paid over the same period.

"JBS is excited to continue our-long standing partnership with Hyrum, Cache County, and the State of Utah," said Jerry Petersen, JBS's director of operation at the Hyrum plant. "We feel this expansion will help us sustain our presence in the state by improving efficiencies and adding production capacity that will provide a solid foundation for years to come."

The state-offered incentive would be made available on a post-performance basis, payable after the job creation and investment has been made.  It will be in an EDTIF refundable tax credit of US$1.76 million, which represents 20% of new state revenue over 10 years.