One of Southern Nevada’s oldest industrial manufacturers is expanding and will get a $2.7 million tax incentive from the state.
The Nevada Economic Development Commission on Tuesday unanimously approved abatements for sales tax, modified business tax and personal property tax for Clayton, Mo.-based Olin Corp., which operates Chlor Alkali Products in Henderson.
Olin plans a $44.6 million investment in its Henderson plant to expand production of chlorine and caustic soda, sodium hydrosulfite, hydrochloric acid, hydrogen, potassium hydroxide and bleach products. Olin is the third largest producer of chlor alkali products and the largest manufacturer of industrial bleach in North America.
Those chemicals are used to treat water and wastewater and are used by the mining and oil and gas industries in their production processes.
The Henderson plant has been in operation since 1942, and Olin acquired it in 2007. The company recently conducted a study of operating costs and determined Henderson to have lower costs than its Tracy, Calif., operation prompting the expansion. Plant Manager Elizabeth Muse, who addressed the commission, recently moved to Nevada from Tracy.
Company officials said the state’s incentives were key in the decision to make the move.
Although the expansion won’t add a significant number of new jobs — only five — it will produce dozens of construction jobs over the next two years. Larry Murray, vice president of engineering and technology, said the number of construction jobs would gradually ramp up to 100 over the next year.
The company’s pay scale is significantly above the state average, with wages averaging $30.82 an hour compared with $19.55 in that manufacturing category.
The company’s pay scale and capital investment were what qualified it for the tax incentives.
State officials calculated that the expanded plant would generate $4.6 million in new tax revenue over 10 years and produce an estimated economic impact of $30.9 million over that period. That means the state’s return would be an estimated $11.35 for every tax-abated dollar over 10 years, state officials said.
State officials also said the company offers an excellent benefit package to employees, including tuition assistance for advanced education, bonuses, overtime pay and a 401(k) retirement plan.
The package approved by the commission abates sales tax one year to 2 percent, or $2.2 million, the personal property tax by 50 percent over 10 years, or $474,158, and the modified business tax by 50 percent for four years, or $52.
In other business, the commission approved a $321,000 tax abatement and deferral package for Boulder City-based Wind Sale Receptor Inc., which is expanding to Pahrump, where it will hire 89 people.
Wind Sail has developed a polyurethane rotor-blade windmill design the company says is three times more efficient than existing wind turbine systems. It has prototype operations in Boulder City and China.
The package unanimously approved by the commission abates sales tax one year to 2 percent, or $213,875, and the modified business tax by 50 percent for four years, or $23,130.
The state also will defer the sales tax for 60 months, which will delay payment of $83,872.
Wind Sail was approved for employee training grants by the commission last month. The company will receive a $162,000 grant to train 81 employees.
The company qualified for the state program with the number of jobs created, 493 percent over the statutory requirement, the $4.2 million capital investment, which is 1,577 percent more than the law requires and the average wage of $23.57 an hour, 19 percent more than the statutory requirement.
The Olin and Wind Sail Receptor requests were assisted by the Nevada Development Authority.