Kimberly-Clark may expand operations on Beech Island with tax incentive
Aiken County approves measure that could result in investments of US$400 million and the creation of new jobs
Kimberly-Clark, which has been operating in Aiken County, South Carolina, for 57 years, may expand its operations on Beech Island in the United States. The Aiken County Council approved an ordinance on February 18 that offers a tax incentive to the company, making it possible to invest heavily in the region.
The measure, known as a “fee in lieu of taxes”, is a program authorized by the state of South Carolina that allows property taxes to be replaced by a fixed annual fee. The aim is to stimulate the expansion of industries and maintain local jobs.
If the expansion is confirmed, Kimberly-Clark could invest at least US$400 million in real estate and equipment, which could result in the creation of approximately 100 new jobs. The company’s Beech Island plant currently employs around 2,000 people and manufactures products such as Huggies diapers, Kleenex facial tissues and Cottonelle toilet paper.
Plant manager Jeff Hutter said that the investment is still being evaluated by the company’s board and that the tax incentive will help strengthen the proposal with senior management. “The requested [property tax] abatement will help boost our financial case with our board of directors as we go through the approval process”, he said.
The Aiken County Council voted unanimously in favor of the ordinance, with an 8-0 approval. During the public hearing that preceded the decision, concerns were raised about the impact of the expansion on the consumption of resources such as water and energy, as well as requests for more transparency about the tax incentives granted.
Council vice-president Andrew Siders and member Landon Ball expressed support for the measure. “I’m for manufacturing and this plant has been nothing but a fantastic partner with Aiken County”, said Siders. Ball emphasized the company’s importance to the local economy, saying the expansion will bring more jobs and revenue without the need for new infrastructure investments.
Now, the final decision rests with Kimberly-Clark, which will evaluate the proposal before announcing the next steps.
