Bayer AG plans to relocate 500 jobs to Creve Coeur and promises a total capital investment of $164 million for the state of Missouri.
The announcement, made on Tuesday from Missouri Gov. Mike Parson’s office, comes after Bayer decided to close its North American crop sciences headquarters in Raleigh, North Carolina. The 500 jobs in St. Louis will be a combination of transfers from that facility and new hires.
“In some cases where we’re transferring jobs in, it’ll be existing jobs that we need to continue our business today,” said Lisa Safarian, president of North America commercial operations at Bayer. “But as we continue to grow and develop, and especially move into the digital space, we’ll need new jobs.”
The average salary for the new jobs will be $110,000 annually. Bayer has also committed to retaining 4,400 jobs in the St. Louis region.
As part of the relocation and retention package, Bayer was offered more than $44 million in tax incentives.
“The state did utilize our economic development incentive toolkit on this tremendous opportunity,” said Rob Dixon, director of the Missouri Department of Economic Development. “We used about $27 million in a combination of tax credit programs and retained withholding programs for the new jobs … an additional about $10 million on the retained jobs piece.”
The funding, which will come over a seven-year period, is from the Missouri Works program. Since the program is performance based, if Bayer does not hold up its end of the deal, the funding could be reduced.
The state is also offering more than $5 million from the Missouri BUILD program and more than $3 million in sales-tax exemption.
Parson met with Bayer CEO Werner Baumann last month during a trade mission to Europe, where he said they discussed the “importance of workforce development and infrastructure” for Missouri businesses.
“This investment will just enhance Missouri’s already successful agtech industry,” Parson said. “Bayer’s investment in Creve Coeur adds to the strengths, and we look forward to working together as we continue to grow and expand Missouri’s agriculture and business industry.”
No details were given on when the jobs would be coming to the state or when the Raleigh facility would be permanently closed.
Wentzville GM expansion
Last week, Parson signed a bill that would give General Motors $50 million in tax breaks to expand its facility in Wentzville. On Tuesday, Dixon said the conversations are still ongoing.
“We are still very much in conversations every day with General Motors,” Dixon said. “Those conversations continue, but they have not finalized at this point. We’re very optimistic, but they are ongoing conversations.”
Dixon did not give a reason as to why GM has not made a decision yet, but said he does expect to hear something soon.
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