Germany-based Henkel Corporation will relocate its Laundry & Home Care and Beauty Care headquarters from Arizona to Stamford, CT, where the company plans on expanding in a $50 million project that will create up to 266 new jobs in the state.
Henkel will be the latest to participate in Connecticut’s First Five Plus program, which is operated under the Connecticut Department of Economic and Community Development (DECD). DECD will provide a 10-year, $20 million low-interest loan to support the project. In addition, the company may also be eligible for up to $5 million in tax credits through the Urban and Industrial Sites Reinvestment Tax Credit program, which allows for a dollar-to-dollar corporate tax credit of up to 100 percent of capital investment on eligible projects. DECD’s financial assistance will be used for renovations and leasehold improvements, and fixtures and equipment, as well as other project-related costs.
“First Five Plus is doing just what it was intended to do, namely attract large development projects with tremendous job growth potential,” said DECD Commissioner Catherine Smith. “The program is outperforming our expectations both in terms of jobs and what the state’s investment is leveraging.”
Signed into law in 2011, the First Five Plus program supports large-scale economic development projects that encourage job creation, new capital investment, and business expansion or relocation. Last month, DECD released the results of a new analysis on the program, showing that the 13 companies currently participating have created about 3,800 jobs, above the minimum level required in the program of 2,600 jobs (200 per company) and are well on their way to the top level job creation of 5,264 new jobs. The participating companies are spending almost $1.3 billion of private investments within Connecticut – over five times the amount of assistance the state has provided through grants and loans.
Henkel offers beauty and personal care, laundry and home care, and a broad portfolio of adhesives, sealants, and surface treatments for consumer and industrial use. Earlier this year, the company announced the acquisition of the Wilton-based The Sun Products Corporation, a leading manufacturer and marketer of laundry care products. With the acquisition of Sun Products, Henkel is the number two laundry and home care products company in North America.
“When an international company of Henkel’s stature decides to relocate to our state, expand its operations, and create hundreds of new jobs, it sends a message to the rest of the world that Connecticut is serious about working with companies to grow, generate capital investment, and strengthen our economy for the residents of our state,” said Governor Dannel Malloy. “Henkel is a valued member of the business community – we are proud of their decision to relocate and expand in Connecticut and we welcome the company to our state.”
The relocation to Stamford is expected to begin in the second quarter of 2017. As part of the project, Henkel is committed to retaining the combined jobs from its former Sun Products facilities, as well as its North American headquarters and Adhesive Technologies General Industries division in Rocky Hill.
“Henkel and Connecticut have been partners in economic development since 1997, when Henkel acquired Loctite Corporation,” said Jens-Martin Schwaerzler, President of Henkel Consumer Goods Inc. North America. “The expansion of our operations and footprint in Connecticut is a testament to this partnership and to the great economic climate, making it attractive to any growing business.”
Relocating or Expanding Your Business In Connecticut
Considering Connecticut for your company’s relocation or expansion project? Check out Business Facilities’ Connecticut Incentives and Workforce Development Guide.
