SALT LAKE CITY — Rail equipment manufacturer Stadler will receive a tax break from a Utah agency as part of the expansion of its Salt Lake City plant, the Swiss-based company’s only U.S. facility.
The Utah Inland Port Authority said last week that it has awarded a 10% break on property taxes, once the expansion is complete, as a “strategic incentive aimed at strengthening Utah’s manufacturing sector and advancing green technology passenger rail solutions.” That tax rebate will be in effect for up to 25 years, provided the company continues to operate in the area during that time and meets other criteria.
The $70 million expansion will double the size of the Salt Lake City facility, which opened in 2019. It will double the size of plant, adding 245,000 square feet with two new assembly halls, welding and sandblasting facilities, and a battery charging station. Over the next three years, it will increase the number of employees at the plant from 500 to as many as 800.
“This investment solidifies Utah as a premier hub for cutting-edge passenger rail manufacturing,” Ben Hart, UPIA executive director, said in a press release. “Stadler’s expansion will bring high-quality jobs, strengthen local supply chains, and drive innovation in zero emission passenger rail technology — exactly the kind of growth we aim to support.”
Stadler most recently landed a contract for light rail vehicles for up to 80 new light rail trainsets for the Salt Lake City area, the company’s first light rail order in North America [see “Stadler to build …,” Trains News Wire, Oct. 23, 2024]. It has built the trainsets for the Caltrain electrification project, is building a battery-electric for Caltrain as a pilot project, and has other orders in hand for Caltrans, TexRail, Metra, and Atlanta’s MARTA. The company’s growth in the U.S. led Stadler to turn North American operations into a separate division at the start of this year [see “Stadler makes US operations …,” News Wire, Dec. 3, 2024].
“We are proud to expand our U.S. manufacturing footprint right here in Salt Lake City,” said Martin Ritter, CEO of Stadler North America Division. “This incentive will allow us to accelerate innovation, enhance our workforce, and strengthen our partnerships with the Inland Port and transit agencies nationwide.”
That’s good news Stadler has their plant right next to the maintenance depot for the Utah Transit Authority these cars go from the factory floor right into testing immediately after they are made. Caltrans and Utah Transit Authority will be the first to use them once they get off the line.
A big bravo to the rational Utah Inland Port Authority (UIPA), and best of good luck to the enterprising Stadler!
Dr. Güntürk Üstün
Note that with this expansion, Stadler continues to set new standards for sustainable transportation solutions while reinforcing Utah’s position as a key player in the future of zero emission passenger rail manufacturing.
Dr. Güntürk Üstün