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P&G to Add 70,000 Metric TPY Tissue PM at Utah Plant by 2017

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Procter & Gamble Co. Cincinnati, Ohio, USA, will expand its paper products manufacturing facility in the Bear River City area of Box Elder County, Utah. This expansion is expected, over the coming years, to bring $400 million to $500 million in capital investment, along with up to 200 jobs. (Trade press reports indicate a second 70,000 metric tpy tissue-toweling paper line will be installed by 2017.)

"This facility is an important part of P&G’s U.S. manufacturing footprint, and its expansion is a strategic part of P&G’s North American Supply Network Re-design," said Yannis Skoufalos, P&G’s global product supply officer. "We are extremely grateful to all state and local officials, including Governor Herbert, for their support."

As part of the contract with P&G, the Utah Governor's Office of Economic Development Board of Directors has approved up to a maximum tax credit of $11,146,615 in the form of post-performance Economic Development Tax Increment Finance incentive, which is 30% of the new state taxes P&G will pay over the 20-year life of the agreement. Each year as P&G meets the criteria in its contract with the state, it will earn a portion of the total tax credit incentive.

"Procter & Gamble’s decision to expand its existing state-of-the-art facility in Box Elder County will continue to serve as a catalyst for quality job growth and increased capital investment in Utah," said Jeff Edwards, President/CEO of Economic Development Corporation of Utah (EDCUtah.) "It is very exciting to see a global leader like P&G select Utah for a second time to grow their business."

Governor Gary R. Herbert noted that "this expansion is a significant boost for our state’s manufacturing sector, as well as the local communities where they operate. Procter & Gamble has invested greatly in Utah because we strive to maintain an innovative and business-friendly environment. We hope more and more businesses will take notice."

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