The city of Maryville and Kawasaki Motors Manufacturing Corporation USA plant are working together to put in place a $25.5 million equipment project.
Kawasaki has been in Maryville for over 25 years, and is the largest source of employment in Maryville. Kawasaki’s Chief Strategic Officer Steve Bratt said the equipment plan will greatly benefit the plant and allow it to do more.
“It is a chapter 100 bond for equipment to expand our capacity here at the factory and the benefit comes from reducing the tax liability that we would have which then allows us to invest even more into it,” Bratt said.
City Manager Greg McDanel said this will be the second time the city has established an equipment project, the first being in 2015. The $25.5 million plan will be broken down into two categories which would allow to company to buy new equipment and replacement older equipment.
“$18 million of the equipment is new equipment to add new lines for increase production at the plant, and $9 million is for replacement equipment for aging equipment at the facility,” McDanel said. “Kawasaki corporation is making that investment largely due to the fact the city is offering one of our state-approved incentives, which are called an industrial revenue bonds or chapter 100 bonds. What those essentially do is they provide a tax benefit to the company for proceeding with a project.”
McDanel said the new plan will have multiple benefits for Maryville. The new equipment will be taxed at only 50 percent of their value instead of the normal 100 percent to incentivize Kawasaki to continue to invest in the community. The new plan will also create new jobs for the Maryville community.
“Along with the chapter 100 process, there are 30 additional jobs that will be created,” McDanel said. “It will increase plant efficiency and production, and then it will also continue to show Kawasaki that we have created a corporate-friendly environment for them to continue to invest and grow here in Maryville.”
Bratt said Kawasaki would begin putting the plan in effect as soon as it passes.
“I hope we get accepted, and that we get approved the chapter 100 bonds…” Bratt said. “We’ll order the equipment. As soon as it passes, we will start buying it, and placing it into our factory.
McDanel said if the 100 bonds passes the plan could greatly help Maryville, and get more money invested locally from Kawasaki, growing the Maryville economy. If everything goes as planned, and the council approves, the plan will go into effect Feb. 12.