Wisconsin governor Scott Walker signs $3-bn incentive package for Foxconn plant
19 Sep 2017
Wisconsin governor Scott Walker signed a $3-billion incentive package yesterday for Foxconn Technology Group to build a flat-screen plant in southeastern Wisconsin, a deal he said would provide thousands of jobs for generations.
The bill was signed during a ceremony at Gateway Technical College in Sturtevant in Racine County, where the plant is expected to come up.
"This is about far into the future," Walker said. "This is about ensuring our children and our children's children will have generational opportunities. This is one of those things that's transformational." (See: Foxconn to build a $10-bn LCD display panel plant in Wisconsin)
Speaking to reporters Walker said, the next steps call for the Wisconsin Economic Development Corporation (WEDC) to finalise a contract with Foxconn to execute the bill's provisions. The agreement would likely be approved at WEDC's board's meeting scheduled for 28 September. The exact location of the plant would be revealed by Foxconn executives before the contract signing of the contract in early October.
Walker told WTMJ-AM radio last morning that he expected groundbreaking this spring. Foxconn is targeting the opening of the plant for 2020.
Foxconn will get nearly $3 billion in cash for investing $10 billion in a new flat-screen factory in southeastern Wisconsin, which will employ 13,000 people.
Scott told reporters that work on the plant, which is to make LCD panels, should start this spring.
The agreement, which provides the largest incentive package for a foreign company in US history, has been slammed as "corporate welfare" by critics. They question is whether Foxconn would follow through with 13,000 high-quality jobs, as lawmakers hope.
The amount of money the firm ultimately receives depends on its investment and hiring.
Critics point out that even under the most optimistic projections, an analysis for Wisconsin state lawmakers found it would take more than 25 years for the state to break-even on the deal.
.jpg "RBI keeps repo rate unchanged as focus remains on inflation")
