Honeyville Inc. Announces Expansion
Salt Lake City—The Governor’s Office of Economic Development (GOED), along with Honeyville Inc., is pleased to announce that the Utah-based food products company will expand its manufacturing within the state, generating 115 jobs and an expected capital investment of $23 million.
“Any expansion of the state’s manufacturing industry is cause for celebration, as that’s a major driver in our economy,” said Val Hale, GOED executive director. “But it’s especially exciting to see such major growth happening for a local, family-owned company.”
Honeyville Inc. started in the 1950s in Parowan. Founder Lowell Sherratt Sr. eventually moved his business to the small town of Honeyville—earning the company its name. Beginning primarily with grain production, Honeyville has since expanded under the direction of Lowell Sherratt Jr., the founder’s son, and now specializes in private label co-packing, mixing/blending, grain milling, heat-treatment, wholesale ingredient distribution and consumer products. Honeyville supplies food producers, retailers, restaurants and consumers. Headquartered in Utah, Honeyville Inc. also has operations in California, Arizona and Ohio.
“Honeyville has experienced significant growth and after careful consideration has found Utah to be the ideal state for expanding its operations,” said Ed Hemphill, Honeyville Inc. president. “Utah has an outstanding workforce, has established a balanced regulatory environment and is a great location for employees to thrive and enjoy a high quality of life. Utah is also an excellent location to effectively serve several western states.”
Honeyville Inc. has indicated that the expansion will create up to 115 jobs over the next eight years. The total wages in aggregate are required to exceed 110 percent of the county average wage. The projected new state wages over the life of the agreement are expected to be approximately $35,982,547. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $2,601,306 over eight years. The project is expected to generate up to $23 million in capital investment.
“We are always excited to see more jobs coming to the state, especially through a great homegrown company like Honeyville Inc.,” said Jeff Edwards, president and CEO of the Economic Development Corporation of Utah. “Utah is the best place to start, grow, and expand a business. Nobody knows that better than the companies who have experienced that first hand.”
Honeyville Inc. may earn up to 20 percent of the new state taxes they will pay over the eight-year life of the agreement in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) tax credit rebate. As part of the contract with Honeyville Inc., the GOED Board of Directors has approved a post-performance tax credit rebate not to exceed $520,261. Each year as Honeyville Inc. meets the criteria in its contract with the state, it will earn a portion of the total tax credit rebate.