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Foxconn chooses Mount Pleasant, Wisconsin for its $10 billion manufacturing facility

By midian182 ยท 24 replies
Oct 6, 2017
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  1. Taiwanese electronics giant Foxconn, best known as one of Apple’s major suppliers, is to build a $10 billion manufacturing campus in Mount Pleasant – a village in Racine County, Wisconsin. It had been suspected that the company would choose this location, and officials finally confirmed the news earlier this week.

    Back in June, in was reported that Foxconn had narrowed the search for its new display plant to seven states — Ohio, Pennsylvania, Michigan, Illinois, Wisconsin, Indiana, and Texas. The company says it will build an industrial campus with around 20 million square feet of office space across 1.56 miles.

    Foxconn will manufacture liquid crystal displays at the plant, which will be used in everything from self-driving cars to aircraft, as well as consumer products such as phones and televisions.

    The campus will consist of a multibillion-dollar thin-film transistor liquid crystal display plant, a facility to package LCD modules, a skill-intensive facility focused on molding and tool-and-die processes, and an assembly operation to produce end-device units.

    County and village officials offered Foxconn a $764 million incentives package to move to Mount Pleasant, on top of up to $3 billion from the state — providing the company can fulfill its jobs promise. Foxconn is expected to hire around 13,000 people on average salaries of $53,000, and the plant could attract around 150 Foxconn suppliers to the area, who will bring additional jobs.

    "I think it's going to be really good. The economy ought to pick its way up around here. It's been dragging a little here in Racine (County)," Michael Rosenbaum, a village trustee in the town of Sturtevant, told the Chicago Tribune.

    Permalink to story.

    Last edited by a moderator: Oct 6, 2017
  2. p51d007

    p51d007 TS Evangelist Posts: 2,017   +1,281

    Hope they got this is writing "providing the company can fulfill its jobs promise. "
    This happens a lot...company comes in with the promise of "jobs", the city, county, state
    give the company so many give-a-ways, and then something happens, and they pull out,
    leaving taxpayers to clean up the mess.
    Wonder what other government give-a-ways were done under the table, since this area is
    RIGHT IN THE MIDDLE of House Speaker Paul Ryan's district.
  3. Theinsanegamer

    Theinsanegamer TS Evangelist Posts: 1,587   +1,798

    there were many complaints, back when this was just a rumor, that Wisconsin was going to wave multiple environmental laws so that foxconn could set up there.

    in 30 years we are going to be hearing all about the cancer cases in the area around this factory, guaranteed.

    And even if foxconn provides that 13000 jobs, all the high payed ones will have current foxconn workers transplanted from elsewhere. Wisconsinites are just going to end up with a bunch of additional janitorial jobs.
    p51d007 likes this.
  4. Footlong

    Footlong TS Addict Posts: 152   +81

    I find it hard to believe that 13000 jobs will be created. The automation process of this line of production is increasing. Unless Foxconn is saying up to 13000 jobs if demands keep growing for their parts. Other than that I don't see this happening.
    p51d007 likes this.
  5. Puiu

    Puiu TS Evangelist Posts: 3,529   +1,988

    Are people still daydreaming thinking that they'll make more than 1-2k jobs in the next 5 years?
  6. $3.7 billion dollars of public money to the world's largest contract electronics manufacturer. According to D & B Hoover's Company Profiles, Hon Hai Precision Industries Co. Ltd. (trade name: Foxconn) had 19.557 billion in cash at the end of 2016 and reported a gross profit for the year of 2016 of 9.943 billion.
    Guess they needed the handout
  7. If State A says, "build it here, you've got the cash" and State B says, "Build it here and we'll give you $3.7 billion." ...who do you think gets the plant?

    Business 101.
    Reehahs and kevbev89 like this.
  8. kevbev89

    kevbev89 TS Maniac Posts: 196   +169

    ^ pretty much that. People act as if profiting companies owe everybody something.

    Kind of hilarious if you think about it.
  9. Uncle Al

    Uncle Al TS Evangelist Posts: 5,541   +3,919

    Yeah, we had an identical incident happen in Clarksville TN with an American company called Hemlock Semiconductor because they were stupid enough to build a plant in China and didn't believe the Chinese would steal their technology then turn around and sell it here for ten cents on the dollar ......
    p51d007 and Reehahs like this.
  10. I don't think they owe me anything, but why do corporations think the public owes them this kind of money.
    TempleOrion and wiyosaya like this.
  11. Bro, it was offered.

    Foxconn exec: There are 50 states. Which one is going to be most feasible (profitable)?

    Foxconn analyst: Wisconsin has the logistics. They're also offering $3.7 billion up front.

    Exec: What are the other offers?

    Analyst: Atlanta has come forward with tax incentives and there is the airport to consider.

    Exec: Are there any tax incentives with the Wisconsin offer?

    Analyst: Yes. Overall, the Wisconsin government is making a $5 billion offer, all things considered. The next best is Texas, which is just shy of four with a less ideal supply chain situation.

    A month later...

    Techspot: Foxconn chooses Mount Pleasant for upcoming plant.

    I repeat: business 101
    MilwaukeeMike likes this.
  12. I'm not arguing that for Foxconn, the sensible choice is to accept the 3.7 billion. I question why we allow our governments to take the money from our wallets (taxes) and give it away to these companies.
    I said I didn't expect anything. Actually I do, I expect the company to make a product and me to decide to buy or not buy it. I expect that I won't be forced (through taxes) to give money I have earned to a for profit corporation. I already know I will be disappointed, but I'm pointing out that the 3.7 billion doesn't magically appear. It came from the wallets of the people of the state of Wisconsin and that this is an insane situation. That's all
    TempleOrion likes this.
  13. The taxes are used to pay for the upkeep and improvement of the state (in theory, anyways).

    That money was used to bring X number of jobs, Y amount of taxes (via related property, income, and transportation-related collections), and Z amount of additional business to local companies as a result of X that further contributes to Y.

    Sounds perfectly rational. Especially if they outbid another state for it.
  14. I honestly hope it works out for the people of Mt. Pleasant and Wisconsin
    Now I just wonder how the new Amazon facility will play out, my city is making a play for it, as are other major cities in the area.
  15. wiyosaya

    wiyosaya TS Evangelist Posts: 4,131   +2,420

    If Foxconn does not come through with the promises, Walker will have some man-splaining to do.
  16. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 3,160   +1,413

    I see - so a congressmen does exactly what he's supposed to do and brings some jobs to his district and you think it's obvious that there's something underhanded going on?

    THey're not taking from our wallets. The way much of this is paid for is by not making Foxconn pay taxes. So Foxconn gets to keep a couple billion in taxes they'd otherwise have to pay. But.. if they don't come to WI they wouldn't be paying those taxes anyway.

    They are already hiring. I live in Milwaukee, so I see Foxconn on the news every night. They already had a job fair at the University of Wisconsin Milwaukee looking for engineers this week. They want to start hiring people immediately, and they're choosing local schools to start - and they're college grads with engineering degress, aka, not $12/hr jobs.

    Foxconn suppliers are now looking at moving to SE Wisconsin too. FYI we have an Amazon distribution plant that can't fill it's positions right now in basically the same area (on the freeway between Milwaukee and Chicago). The problem will not be jobs - the problem will be people to fill them.

    But that's a problem for Foxconn and Amazon - wages will be high and it's a cheap area to live in. They're already talking about widening the freeways, and people from northern Milwaukee are planning on moving.

    The farmers who own the land they want to build on are going to be instant millionaires. They're paying over market price to buy the land from them.

    Even the environmental protection group in WI said 'The impacts are minimal and it's worth it for all the good it will do people.'

    Every day people try to find reasons this is a bad idea so Paul Ryan and Scott Walker (the gov) look bad for doing this... the 'issues' look more and more petty each day.
  17. Kashim

    Kashim TS Addict Posts: 128   +129

    I think you're wasting your energy explaining things to this guy. He's already decided this is a bad deal for tax payers and he'll keep changing his question/objection to drive that narrative. So yeah, don't bother.
  18. cliffordcooley

    cliffordcooley TS Guardian Fighter Posts: 11,516   +5,080

    Well it is Foxconn we are talking about. I'm not convinced it will be a good deal regardless which state they move to.
    wiyosaya likes this.
  19. That's a really good point to which I have no immediate thoughts. I'll have to think about that one.
    TempleOrion likes this.
  20. mailpup

    mailpup TS Special Forces Posts: 7,413   +629

    Foxconn is still subject to federal taxes. Their tax breaks only apply to state and local jurisdictions.
    TempleOrion likes this.
  21. commanderasus

    commanderasus TS Addict Posts: 225   +98

    wiyosaya likes this.
  22. kevbev89

    kevbev89 TS Maniac Posts: 196   +169

    They don't. The state WANTS them there because it will bring jobs and such. So by offering tax breaks or whatever will give the incentive to choose that location in that state. It is a win-win situation for everybody involved.
  23. corporations always salivate and jostle for this kind of public offering. My city is going thru the NFL, your stadium sucks we need a new one built. Their first proposal always involves hundreds of millions of tax dollars despite the fact that they turn a tidy profit. Not really different than this. This particular instance may be a win-win (the devil is always in the detail of the agreement), but to say corporations (you say "They don't") absolutely expect this, well the nicest term I can think of is naive. They are capitalists but want the big public hand out. And we give it to them. You think they sit around those boardrooms thinking about you and your welfare?
    TempleOrion likes this.
  24. Correction: that should be NHL above
    not NFL, but I don't know, maybe the mechanics work the same
  25. BobHome

    BobHome TS Enthusiast Posts: 49   +20

    Don't worry, he'll saw what the Koch Brothers tell him to say. :(

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