Foxconn announces $10 billion investment in Wisconsin and up

"Today we’re announcing the single largest economic development project in the history of Wisconsin and one of the largest in the history of this country," said Walker, who called it the largest job creation project in the nation in an undeveloped greenfield. "This is literally number one."

The deal comes as President Donald Trump seeks to fulfill a promise to bring manufacturing jobs that have been lost in recent decades back to the United States.

U.S. House Speaker Paul Ryan, whose district in southeastern Wisconsin would be home to the facility, called the deal a "game changer" and praised President Donald Trump and Walker for working to make it happen.

"This shows actual results — getting it done," Ryan said.

Ryan and Walker were among a Wisconsin contingent at the White House for the announcement.

Republicans and Democrats joined together to praise the prospect of the company coming to Wisconsin, though some Democrats expressed strong reservations about the size of the potential incentive package. Skeptics also cautioned that Foxconn had not fulfilled some of its promises elsewhere.

The Foxconn plant would make liquid crystal display panels used in computer screens, televisions and the dashboards of cars. Walker's office said the deal could result in up to 22,000 jobs that would be indirectly created by suppliers and businesses looking to locate near Foxconn and serve the company and its workers.

The construction alone would lead to 10,000 jobs over each of the next four years.

“We saw tremendous interest among a great number of states (in the Foxconn plant) because it means an incredible amount of good wage job growth and an incredible potential of spinoff economic development,” a White House official said.

Joining Gou, Walker and Vice President Mike Pence at the event was U.S. House Speaker Paul Ryan, whose district in southeastern Wisconsin would be home to the facility.

Also attending are Wisconsin Assembly Speaker Robin Vos (R-Rochester), state Senate President Roger Roth (R-Appleton), Milwaukee County Executive Chris Abele and Milwaukee Bucks president Peter Feigin.

U.S. Sen. Tammy Baldwin (D-Wis.) and U.S. Sen. Ron Johnson (R-Wis.) are also likely to be there.

A follow-up event will be held Thursday at the Milwaukee Art Museum, according to sources.

Gou will be in Milwaukee that day for meetings related to the company’s Wisconsin plans, but may not appear at the art museum announcement, one source said.

No site has been chosen, but areas in Racine and Kenosha counties remain in play, according to the source who described the possibility of Foxconn creating a sprawling village. The source said Foxconn could end up using multiple locations in southeastern Wisconsin, perhaps with a factory in one place and offices and research facilities in another.

Foxconn is huge. In China, its manufacturing base, the company employs some 700,000 people. The firm's revenue last year totaled about $135 billion. That's roughly equivalent to Amazon.com Inc., which ranked 12th on the Fortune 500 list.

The deal was put together in recent months as Walker, Ryan and Trump each met with Gou and other Foxconn officials.

An incentive package that reaches into the billionswould be unlike anything Wisconsin has offered in the past and would require approval from state lawmakers. State Senate Majority Leader Scott Fitzgerald (R-Juneau) has said he hopes to get bipartisan support for the package.

Company officials have talked about a massive investment in the United States that would create thousands of jobs. They have visited Wisconsin and other states in recent weeks as they consider their options.

In the past, some Foxconn investments have failed to materialize.

In November 2013, Pennsylvania Gov. Tom Corbett announced that Foxconn planned to invest $30 million in a “high-end technology manufacturing facility” with 500 jobs.

The company has a small research operation in Harrisburg, Pa., but the factory was never built.

Similarly, the Washington Post reported in March that Foxconn has spoken of making major investments in India, Vietnam and Brazil, but with results that have not matched the original announcements.

At $3 billion for 13,000 jobs, the deal would cost $231,000 per job. The subsidies would total more than the combined yearly state funding used to operate the University of Wisconsin System and the state's prison system.

Until now, the largest state subsidy ever awarded to a company in Wisconsin was the $65 million offered by then Gov. Jim Doyle's administration in November 2010 to Mercury Marine, which was considering moving its factory from Fond du Lac to Oklahoma. That deal involved retaining thousands of at risk factory jobs.

Other major awards to companies in the state since 2010 include $62.5 million to Kohl's; $61.7 million to Quad Graphics; $47 million to Oshkosh Corp; and $28 million to Fincantieri Marine Group.

In total those state-only awards add up to $264.2 million — just a fraction of the amount expected to be offered to Foxconn by the state and local governments.

These large subsidy awards by the state often don't get paid out in their entirety because the tax credits offered aren't sent to the company until the business shows it has hired or trained workers, built a plant or purchased equipment. So far, the five companies have earned roughly $143 million of the total credits that they were awarded.

For instance, the $65 million promised to Mercury Marine has resulted in $46 million actually being earned by the company, about 71% of the original offer. The company has until the end of 2021 to earn the rest.

Steve Deller, a professor of agriculture and applied economics at the University of Wisconsin-Madison, said a $3 billion deal over 15 years is likely "too pricey in terms of potential economic benefit back to the state."

"Throwing money into incentives makes a slippery slope," he said. "(People) get so wrapped up in the winning game, in the headline of 'we got it' that they lose sight (of the) pretty steep price. Hard to say because we don't know what the package looks like."

Supporters say such an investment would be worthwhile because Foxconn would also draw numerous suppliers that would create their own jobs and energize Wisconsin's economy.

Tom Still, head of the Wisconsin Technology Council, said he believes that every job in a Foxconn plant could bring an additional one to two jobs at company suppliers that would also locate in Wisconsin to be closer to their key customer. Still said those additional jobs could help to justify massive state and local subsidies to Foxconn.

"I think the benefits (of subsidies) need to outweigh the costs and I think they would over time if you construct the deal right," Still said.

State Sen. Bob Wirch (D-Kenosha) said he wants more specifics but expects to back the plan to bring Foxconn to southeastern Wisconsin.

"I would have to look at the details, but generally I am in favor of incentives or corporate welfare when it's attached to jobs," he said.

But state Rep. Jimmy Anderson (D-Fitchburg) expressed deep skepticism about any potential deal.

"Wisconsin taxpayers should not be subsidizing private corporations at the expense of our children, schools, and roads," Anderson said in a statement.

Anderson also suggested Walker has the wrong priorities, saying he "more than bends over backwards" to give corporations a "multibillion-dollar handout."

Assembly Minority Leader Peter Barca (D-Kenosha) said Democrats may remain split on the incentive package, with those from southeastern Wisconsin more likely to support it than those from other parts of the state.

Their support will ultimately depend on the details of the package, he said.

"We have to protect both local and state taxpayers and make sure this includes long-term job opportunities for our citizens," he said.

Foxconn officials want to see bipartisan support for their plan, said Barca, who has met with them.

It was unclear how the funding for the deal would be spread among the state, federal and local governments. Incentives take many different forms and can include cash outlays, infrastructure investments, loans or tax breaks.

There are no new federal incentives being offered for the deal but Foxconn may qualify for existing federal programs for businesses, according to the White House.

Also unknown is how many jobs Foxconn would deliver with its plant and how much workers would be paid. Those will be crucial issues as lawmakers consider whether to sign off on any incentive package.

Bringing the company to Wisconsin would be a win for Walker and Ryan, as well as Trump, who was the first Republican presidential candidate since Ronald Reagan to win Wisconsin.

inb4 anti-globalists are nowhere to be found because they're really anti-anyone-that-isn't-republican

>>161468
You don't understand shit

Must suck

>>161474
yeah, that must be it

How will globalists and liberals ever recover

>>161476
I know that you're being sarcastic because it's literally impossible for a liberal understand how ignorant they are.

>>161468

I was wondering which of the two partisan groups would come in here first: Trump people gloating, or left people finding shit to complain about it. I've seen zero left wingers complaining, in fact I've seen mostly bipartisan support with only some concerns that the Wisconsin state government might not approve the 3 billion tax breaks or that the factory will take several years before it opens. It's all just minor stuff, overall it seems everyone is happy with this outcome.