Smith & Wesson to Receive Incentives From Commonwealth of Massachusetts-- Thompson/Center Arms Rifles to be Produced in Springfield, MA Facility
-- Relocation of Manufacturing to Generate 225 New Massachusetts Jobs
-- Smith & Wesson to Receive up to $6.0 Million in Tax Credits Through 2017
SPRINGFIELD, Mass., Dec. 21, 2010 /PRNewswire/ -- Smith & Wesson Holding Corporation (Nasdaq: SWHC), a leader in the business of safety, security, protection, and sport, today announced that the Economic Assistance Coordinating Council (EACC) has approved an application from Smith & Wesson for up to $6.0 million in tax credits in association with expanding its manufacturing operations in Springfield, Massachusetts.
Smith & Wesson applied for the incentives which support the company's commitment to bring 225 new jobs to its Springfield headquarters and to invest significant capital into that facility over the next five years. The newly created jobs in Springfield will span a number of functions, from manufacturing operations to senior management positions. The credits will be awarded over a period of seven years, but hiring for the new jobs will start in January 2011.
The award resulted after several months of discussion between the Commonwealth and Smith & Wesson, while the company considered location options for its rifle manufacturing. James Debney, President of Smith & Wesson Firearms, said, "Although several states and cities have approached us to entice expansion into their locations, Massachusetts and the Patrick-Murray Administration, Secretary Bialecki and his office, and Springfield Mayor Sarno and his staff, collaborated on the project to make our choice clear. These administrations are highly collaborative and worked closely with us on incentive programs to structure an agreement that demonstrates the commitment of both the Commonwealth and the City to not only Smith & Wesson, but to our employees, the local community, and to manufacturing in Massachusetts."
Smith & Wesson Holding Corporation President and CEO, Michael Golden, said, "We are proud to continue our 158-year heritage of firearm manufacturing in Springfield and we are excited that many of the state's largest law enforcement organizations, including Worcester, Springfield, and Lowell, have joined agencies across the nation in choosing the reliability and safety of our Massachusetts-made Military & Police ("M&P") pistols."
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Armed with tax incentives, Smith & Wesson to expand Springfield plant Jeremy Kislus is seen assembling a handgun at the Smith & Wesson plant in Springfield. Smith & Wesson plans to invest in the plant and add 225 jobs, aided by $6 million in tax incentives the state approved yesterday.The state approved $6 million in tax incentives for Smith & Wesson Holding Corp. yesterday to help the gun maker expand its Springfield headquarters and manufacturing plant.
The company said earlier this month it would add 225 jobs at its massive 50-acre Roosevelt Avenue facility in Springfield, where it plans to shift production of its Thompson/Center Arms line of hunting rifles from New Hampshire. The Springfield plant already employs roughly 900 workers.
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Founded in 1852 by Horace Smith and Daniel B. Wesson, Smith & Wesson makes a variety of rifles, shotguns, pistols, and equipment for hunting, law enforcement, military, and other uses. Executives predicted it would generate between $405 million and $425 million in sales in the fiscal year ending in April, less than expected after a surge in demand last year.
Although some workers will likely relocate from New Hampshire to Springfield as part of the consolidation, Smith & Wesson expects to fill most of the jobs with new hires, including managers, skilled machin ists, and support staff, the company said. The average worker will earn $30,000 to $40,000 per year, although some jobs will pay as much as $165,000 per year.
The $6 million in tax breaks, which will be spread out over seven years, work out to nearly $27,000 per job and form the second-largest incentive package the state has awarded this year. The state recently reconfigured its tax incentive program to steer more money to manufacturers and other companies with significant out-of-state sales, and to give preference to businesses expanding in poorer cities such as Springfield.
http://www.boston.com/business/articles/2010/12/22/massachusetts_oks_tax_incentives_for_gun_maker/