Mac maker Flextronics eyes $15M investment, 300 new Austin jobs

May 14, 2014
Austin Business Journal

Flextronics — which makes the sleek and new Apple Mac Pros in Austin — has proposed to hire 300 new employees, keep 200 others on staff and invest $15 million in Austin as part of a city-sponsored, enterprise zone designation, according to draft documents at the city






The deal would use the state's Texas Enterprise Zone Act to designate Flextronics as a single enterprise zone project. Under the terms, Flextronics America LLC, a division of Singapore-based electronics manufacturer Flextronics International Ltd. (Nasdaq: FLEX), would agree to invest $15 million, hire 300 new workers and retain 200 more at its 12455 Research Blvd. site in North Austin. In exchange, the company would receive up to a $1.25 million refund from the state's sales and use tax and get a speedier development review process from city officials






Last October, Flextronics went through similar negotiations with Travis County to be designated a foreign trade zone in exchange for hiring more than 800 workers and investing in technology to help the company produce the new Apple Mac Pro computer. It's unclear if the jobs that the company would commit to in Austin would be in addition to or part of the more than 800 it had previously said it may hire






The new jobs are to be created in 2014, would be paid an average annual wage of $30,276 and consist of hourly floor production workers, according to draft documents prepared for an upcoming City Council meeting. The company would also retain 200 senior management positions paying an average annual wage of $115,654. The proposed deal requires 35 percent of new employees to meet the state's economically disadvantaged residence requirements






The state's rules require Austin to nominate the company and offer an incentive of its own before the deal can be approved by the state. At its May 22 meeting, City Council is scheduled to consider the ordinance that nominates the company for the incentive program and streamlines the city's inspection and permitting at the Flextronics expansion by providing a single contact. The streamlined permitting and inspection qualifies as a city incentive for the state's program






The company reportedly employs more than 2,500 people in Austin






At the upcoming City Council meeting, the Flextronics deal will be considered alongside a similar, $200 million deal for Spansion Inc. (NYSE: CODE). Last year, the city nominated San Jose, California-based eBay Inc.(Nasdaq: EBAY) for the enterprise zone designation






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