Thursday, September 10, 2015

Axalta to build research facility, bring 190 new jobs to Navy Yard



Axalta Coating Systems has selected the Navy Yard as the site of a new international research-and-development hub, drawn by the campus' open green spaces, its existing name-brand tenants, and a generous helping of public funds.


The 175,000-square-foot research and development center at the sprawling South Philadelphia site will replace a facility in Wilmington, Axalta chief executive Charles Shaver said Wednesday at a news conference.

When fully operational in 2018, the $70 million project will have drawn at least 190 employees north to Philadelphia, according to the company, which makes specialty paint and coatings for the automotive and other industries.

Axalta, previously known as DuPont Performance Coatings, was spun off from the Wilmington chemicals giant by the Carlyle Group in 2013. It selected Center City for its corporate headquarters later that year.

The company went public in November 2014.

Its so-called Global Innovation Center will occupy a portion of the Navy Yard already settled by research-and-development facilities including Shanghai-based pharmaceutical company WuXi AppTec's laboratory and production center.

The campus also includes an office park with headquarters of drugmaker GlaxoSmithKline. Elsewhere at the site, a cluster of restored industrial structures houses Urban Outfitters' offices and design studios.

Sharing the campus with such companies grants Axalta standing as it seeks to recruit tech talent and forge an identity separate from DuPont, Shaver said.

"People will associate with and feel like they are part of the community," he said, adding that the site's campus atmosphere along the Delaware River and other outdoor amenities also would be a recruiting draw.

"You really want to hire the best people who will do their best for you," Shaver said.

Axalta is working on the new research center with Liberty Property Trust, which was given the exclusive right to develop the Navy Yard in 2000 as long as it built 60,000 square feet there every two years.

Axalta's engineers and researchers there will coordinate the work of 1,400 staffers at labs around the world, the company said.

Shaver said that Axalta had considered lower-cost locations for the facility, such as Asia-Pacific countries with cheaper labor and regional spots with lower taxes, such as Delaware, but that the Navy Yard's assets made it worth the expense.

The company is getting some taxpayer help, including a $400,000 state grant and a $750,000 loan from Philadelphia Industrial Development Corp. that it will be excused from repaying if it meets certain job targets, said PIDC president John Grady.

Axalta also may be eligible for breaks on some city and state taxes through the Navy Yard's designation as a Keystone Opportunity Zone if it creates enough jobs or invests enough money there, Grady said.

Pennsylvania Labor Secretary Kathy Manderino said the project is a good deal for the state and the city because it has the potential to create 300 positions in ancillary industries and other indirect jobs on top of Axalta's direct hires.

The company's maintenance of a Center City corporate headquarters and a Navy Yard research facility, meanwhile, demonstrates Philadelphia's versatility for businesses as it seeks to lure more companies to the city, Grady said.

"What they're saying is that Philadelphia is a place where you can base all of your business operations," he said.

Axalta's existing staff at the Wilmington facility, which it leases from DuPont, has agreed to commute to Philadelphia, Shaver said.

The move from DuPont's facility had become necessary to complete its split from its former corporate parent, he said.

"It's kind of like when you get a divorce but you're staying in the same house," he said. "It's not going to work."

Source: Philly.com

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