Will Intel Build a Plant in Utah? Near Micron?
The interesting part of this article is that the bill is sponsored by Sen. Howard Nielson, R-Provo,. The Lehi Micron plant is in Utah County and so is Provo.
sltrib.com
Wednesday, January 28, 1998
Beehive State Abuzz With Rumors Intel Will Build a Plant
BY LISA CARRICABURU
THE SALT LAKE TRIBUNE
Washington may be abuzz with the latest rumors about President Clinton's sex life. But in Utah's capital, they're whispering about whether Intel -- the nation's largest manufacturer of microprocessors -- will build a big facility here.
Representatives of the company based in Santa Clara, Calif., are meeting with consultants and economic developers to determine whether the Wasatch Front could be the place for a plant initially employing 700 to 800, and ultimately growing to 6,000 employees.
Discussions are preliminary. No deals have been signed nor have any applications been filed. And a formal announcement probably will not be made until at least spring, if ever.
But Intel's apparent interest in Utah has spawned secretive meetings and a flurry of rumors as Gov. Mike Leavitt and economic developers lobby for legislation enabling them to offer Intel and other companies better incentive packages.
They want lawmakers to pass a bill sponsored by Sen. Howard Nielson, R-Provo, offering income-tax credits to companies that increase research spending in the state.
Matter of Competition: A coalition of business interests led by the Salt Lake Area Chamber of Commerce initiated the legislation last year, saying Utah must offer incentives if it hopes to compete with 35 other states already providing research-tax credits.
There also is a push for lawmakers to replenish the Utah Industrial Assistance Fund (IAF), which offers loans to companies considering locating here. Recipients are forgiven some or all of their debts if they accomplish specified economic-development goals, such as creating jobs that pay above-average wages.
The IAF now has $1.3 million, said David Winder, Utah Department of Community and Economic Development executive director. Leavitt's budget proposal would add another $1.7 million.
Yet Winder and other economic developers are mum about any discussions with Intel. They offer only that negotations are under way with a company that could become a major Utah employer.
Intel is not talking either, except to say that growing demand for its products means it always is looking for new sites.
''We never discuss or speculate on our intentions publicly before making a decision,'' spokesman Tom Waldrop said, adding Intel takes its time and does a lot of advance work. ''Something can look pretty certain and fall apart.''
Vincent Glinski, an analyst with Rodman & Renshaw in New York City, said Intel consistently seeks sites where it will benefit from a highly skilled work force and proximity to major universities. It considers each place's quality of life and looks for locations where the company will receive tax breaks and incentives.
If the Shoe Fits: Utah more or less fits Intel's criteria, added Stephen Dube, an analyst with Wasserstein Perella Securities in New York City. Dube had not heard Intel is considering Utah as a site for expansion. Still, he added, ''The company is constantly in need of new facilities. It has run out of some of its more traditional spots.''
Intel has fabrication plants in California, Oregon, New Mexico and Arizona as well as overseas, Waldrop said. It is building a new $1.3 billion facility in Texas, which is scheduled to open in 1999.
Glinski said Intel plants typically start up with at least 700 to 800 workers and grow to employ about 6,000.
The fast-growing company -- which had $20.8 billion in sales in 1996 -- once before considered Utah a possible site for either a fabrication plant or a marketinand product-support operation.
In July 1995, Intel spokesman Howard High said Utah would be on the company's ''short list'' for expansion if it decided to grow beyond the states where it already had a major presence.
Intel does have a small presence in Utah now -- with about 400 employees in American Fork and Salt Lake City.
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c Copyright 1998, The Salt Lake Tribune
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