KIMBERLY, WI (WTAQ-WLUK) - The Kimberly-Clark plant will remain open in Cold Springs.
At a press conference on Thursday afternoon, outgoing Governor Scott Walker and company officials announced that K-C and the Wisconsin Economic Development Corperation have agreed to a 5-year contract. The contract provides Kimberly-Clark with up to $28 million in tax incentives to keep the facility in Fox Crossing open.
With the agreement Kimberly-Clark keeps 388 technical manufaturing jobs through 2023 and a payroll of $30 million at the facility. K-C will also invest $200 million in the Neenah facility for five years to continue innovation and growth. The company can also earn tax credits based on how many goods they use from Wisconsin.
“We have been working diligently over the last few months to ensure that Kimberly-Clark, a company with a long legacy in a key Wisconsin industry, will continue to have a strong presence in the Fox Valley. We are also pleased that Kimberly-Clark is making the commitment to continue to invest and grow in our state for years to come,” said Governor Scott Walker, who joined company officials Thursday in announcing the plans.
“Keeping longstanding businesses in our state is just as important as attracting new ones. This agreement is a win for Wisconsin and the company, but more importantly for the employees at Kimberly-Clark and the many businesses and communities who rely on the company for their partnership and support.”
Tax incentives for Kimberly-Clark are performance based. So if the company does not carry out the terms of agreement, they won't get the $28 million in tax incentives.
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Kimberly-Clark is set to make an economic development announcement Thursday, regarding the future of its Fox Crossing facility.
Governor Scott Walker, State Sen. Roger Roth, and Kimberly-Clark Vice President and Deputy General Counsel Colin Smyser will be at the 1:45 p.m. announcement at its Cold Spring location.
K-C announced in January that two manufacturing facilities in the Fox Valley -- the Neenah Nonwovens Facility and the Cold Spring Facility in Fox Crossing -- would close.
The announcement was part of K-C's global restructuring program, which included cutting up to 5,500 jobs around the world.
Since the announcement, state leaders have tried to entice Kimberly-Clark to keep the Cold Spring Facility open by offering the company tax breaks.
The state Assembly approved the incentive package in February, but the Senate never took it up.
Last week's lame-duck session was originally intended, in part, for the Senate to consider the bill, but it never came up for a vote.
About 500 people work at the Cold Spring Facility.
Kimberly-Clark, the maker of personal products such as Kleenex tissues and Huggies diapers, was founded in Neenah in the 1870s but moved its corporate headquarters to Irving, Texas in 1985.
According to the Fox Cities Regional Partnership, Kimberly-Clark is the third-largest employer in the Fox Valley.
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