Daikin America Inc., which has operated in Decatur for 25 years, plans an expansion of up to $195.51 million at its manufacturing facility on State Docks Road, according to its application for tax abatements.
The company estimates there will be 50 new employees after two years, with an estimated average annual salary of $78,000, not including benefits, a summary of the application states. As of April 1, Daikin had 381 employees, with an average annual salary of $90,000, not including benefits.
The city’s Industrial Development Board this afternoon approved Daikin’s request for abating certain sales taxes during the capital investment period and non-education property taxes for a 10-year period.
The project includes an expansion of Daikin’s polymer production capabilities and the associated monomer production and utility systems. Polymers are materials made of long, repeating chains of molecules.
The company expects project construction to begin in January 2020 and be completed by May 2022, according to the abatement application.
The IDB abated non-education state and Morgan County property taxes totaling approximately $5.13 million over 10 years. During construction, an estimated $1.69 million in city sales and uses taxes will be abated in addition to $3.38 million in state sales and use taxes.
The project will result in $5.96 million in additional property taxes for the Morgan County, Hartselle and Decatur school systems during the 10-year abatement period. Sales and use taxes created during construction and benefiting the three school systems will total approximately $2.27 million.