VOL. 132 | NO. 226 | Tuesday, November 14, 2017
Chemical Manufacturer Seeks Incentives to Open Memphis Facility
By Patrick Lantrip
Peroxychem LLC, a Philadelphia, Pennsylvania manufacturer of hydrogen peroxide, peracetic acid and persulfates, is looking to expand into the Memphis market.
The chemical manufacturer is seeking a seven-year Jobs PILOT (payment-in-lieu-of-taxes) that would enable it to construct a 108,000-square-foot facility at 335 Stiles Drive.
According to the company’s application with the Economic Development Growth Engine for Memphis and Shelby County, Peroxychem will invest $9.6 million into the Memphis facility that includes $2.7 million in construction costs and $4.3 million to purchase manufacturing equipment and other personal property. The remaining $2.4 million in soft costs are not eligible for the tax abatement.
“(The) project includes two expansion steps for a new peracetic acid production facility to be constructed at the M.C. Stiles Wastewater Treatment Plant,” Peroxychem chief financial officer Mark Valentino wrote in the application.
“The first expansion step includes production of food grade formulations … The second expansion step includes new operations requiring a new building process equipment, foundations, electrical equipment, structural steel, utilities, piping, instrumentation and controls.”
Since the M.C. Stiles Wastewater Treatment Plant sits on more than 100 acres at the confluence of the Mississippi and Wolf rivers just north of Harbor Town, Preoxychem is looking to subdivide a portion of that site for its new chemical production plant.
Peroxychem will create 15 net new jobs with an average annual salary of $56,667 excluding benefits. Of those 15 jobs, Peroxychem is looking to hire two supervisors who will average $80,000 per year, two lead operators and five driver/technicians averaging $60,000 a year, and six operators averaging $45,000.
If approved, the Memphis facility would produce peracetic acid, a disinfectant used in many bacterial-control applications from food and beverage to wastewater treatment.
EDGE staff estimates the project will generate $788,868 in local tax revenues the city and county currently do not get during the term of the PILOT, while saving the applicant $692,253 for a 1.14 cost-to-benefit ratio.
Of the $788,868 in tax revenue that would be generated by the PILOT, $107,289 will come from construction cost taxes, $230,751 will come from property taxes and the remaining $450,828 will come from operational taxes.
Per the terms of the PILOT, Peroxychem will be required to spend a total of $794,654 with city of Memphis and Shelby County certified minority and women-owned business enterprises (MWBEs), including 25 percent of the construction and site-work costs.
Currently, Peroxychem employs more than 500 people in the U.S., Canada, Mexico, Spain, Germany, Thailand, China and the Philippines and produces an array of chemical solutions that are used on energy, environmental, food safety, paper and polymer products.
The EDGE board will review Peroxychem’s application at its Wednesday, Nov. 15, meeting.