In response to recent reports surrounding the Plexus tax credit agreement with the Wisconsin Economic Development Corporation (WEDC), we offer the following statement.
Wisconsin is our home. Wisconsin is where Plexus was founded over 35 years ago and we remain committed to growing our presence in our home state.
In 2012, Plexus experienced a disruptive event when our largest customer at that time, which represented approximately 16% of Plexus' global revenue, unexpectedly announced its decision to disengage from Plexus. This customer disengagement represented a significant challenge for the Company and unfortunately resulted in the loss of jobs in Wisconsin. These jobs were not moved to Plexus locations outside of the U.S. but instead were lost from Plexus altogether as the result of the customer's decision to move its programs to our competitors' locations outside of the U.S. While the significant customer disengagement was a challenging event for us, we have regained many of the jobs that were lost in 2012 and 2013 and are back on a path of growth in Neenah, Wisconsin.
Plexus, in 2012, entered into a tax credit agreement with the WEDC. The agreement gives Plexus the opportunity to earn up to $15 million in tax credits if the Company achieves certain financial and employment targets over a seven-year period (2012 to 2019). The targets include investing over $131 million in Wisconsin through capital investments, job training and supporting Wisconsin suppliers. In addition, the tax credit agreement targets Plexus to maintain at least 1,000 full-time jobs in Wisconsin and add 357 new jobs in Wisconsin before the agreement ends in June of 2019.
To date, Plexus has complied with all requirements set forth under the tax credit agreement. Within the first 2 years of the 7-year agreement period, Plexus has already invested $113 million (roughly $62 million in capital investments and $50 million in purchases from Wisconsin suppliers), nearly 86% of the financial commitments set forth in the tax credit agreement.
Plexus currently employs over 1,600 full-time employees in the state, well above the 1,000 employee threshold. In addition, we currently have over 100 job openings in Neenah and continue to be optimistic about our prospects for continued growth in Wisconsin.
Plexus continues to have long-term commitment to the Fox Cities and State of Wisconsin as evidenced by the recent substantial investments outlined below.
- In 2010, Plexus constructed a $20 million global headquarters facility in Neenah. The redevelopment project won the Environmental Protection Agency's 2012 Brownfield Renewal Economic Impact award for reinvigorating a formerly economically blighted site in downtown Neenah. Our investment resulted in locating several hundred employees in downtown Neenah and is helping to foster a vibrant and positive economic climate in the community.
- Plexus recently completed the construction of a $50 million, 410,000 square foot state-of-the-art manufacturing facility in Neenah. This new facility offers an excellent work environment, sustainable energy features, and increased capacity to attract customers and grow our employment in the region.
- We recently completed the construction and facilitation of our new global data center in Neenah at an investment cost of $5.2 million.
- In 2015, we are considering further investment in Neenah to support the growth in our Engineering Solutions business.
- In addition to business investments within the State, Plexus contributes substantially to enrich the communities in which we operate through our charitable foundation.
We are excited about our future in our home State and proud of our Wisconsin heritage. We remain committed to being a strong partner to the communities where our employees and their families call home.
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About Plexus Corp. – The Product Realization Company
Plexus (www.plexus.com) delivers optimized Product Realization solutions through a unique Product Realization Value Stream service model. This customer-focused services model seamlessly integrates innovative product conceptualization, design, commercialization, manufacturing, fulfillment and sustaining services to deliver comprehensive end-to-end solutions for customers in the America, European and Asia-Pacific regions.
Plexus is the industry leader in servicing mid-to-low volume, higher complexity customer programs characterized by unique flexibility, technology, quality and regulatory requirements. Award-winning customer service is provided to over 140 branded product companies in the Networking/Communications, Healthcare/Life Sciences, Industrial/Commercial and Defense/Security/Aerospace market sectors.