St. Paul, Minn.-based 3M Co. (Nasdaq: MMM) officially is moving forward with its $40 million Springfield expansion plans.
Announced this morning by the Springfield Business Development Corp. and others, the company’s investment plans mean 3M will expand into a building it already owns just north of its Queen City operations at Chestnut Expressway and U.S. Highway 65.
Speaking before City Council in November, local 3M plant manager Frederick James indicated the company planned to take over the former Mammoth HVAC manufacturing plant. Mammoth exited
the 3300 E. Pythian St. plant it leased from 3M in 2015.
“The desire for us is to expand into that building, and it requires significant upgrades for chemical manufacturing, which is what we do,” James said at the council meeting.
The effort is expected to result in 92 new Springfield jobs with an average pay of $58,000 annually as 3M expands on its local manufacturing of adhesive-based products, including sealants, sprays and structural adhesives for the aerospace industry.
Council in November gave preliminary approval to the project and finalized the details during its Jan. 23 meeting, according to Springfield Business Journal archives and SpringfieldMo.gov.
A series of bills increased 3M’s tax breaks on facility upgrades and established a financing proposal through which the city would issue industrial bonds. Industrial bond financing – or Chapter 100 bonds – allows the city to buy manufacturing equipment with a manufacturing company’s money.
Through the deal, 3M will rent the equipment from the city for 10 years and cover payments in lieu of taxes for 25 percent of the value of new improvements. The deal lasts for 10 years, at which point equipment ownership transfers to 3M and the property is taxed. The bonds will not exceed $17 million.
According to the SBDC release, 3M also will receive incentives from City Utilities and the state’s Missouri Works program, as well as enhanced enterprise zone incentives. Missouri Department of Economic Development spokeswoman Amy Susan said the value of the state incentives is over $1.9 million.
“We hope 3M’s expansion of its adhesives and tapes division in Missouri sends a message to those in the business community — from the small family business to the major corporation — that we are going to work to help them grow and prosper,” Gov. Eric Greitens said in a separate release.
3M, a Fortune 100 multinational company, has operations in more than 70 countries. 3M also has operations throughout Missouri, including Columbia and Nevada.