Merit Medical Takes $4.4 Million Government Handout
Updated: 12/11/2009 12:18:21 AM MST
Merit Medical Systems Inc. continues to grow, even in difficult economic times, announcing yet another expansion that could add an estimated 400 jobs in Utah over the next decade.
The South Jordan-based manufacturer of disposable medical products on Thursday accepted an incentive package from the state of Utah worth as much as $4.4 million. The offer was tendered by the Governor’s Office of Economic Development board, made up of private-sector business leaders and public officials who review offers designed to encourage companies to expand or relocate to Utah.
Republicans giving government handouts to Republicans and all the time decrying government handouts. Where would the free enterprise system be without free government handouts to free enterprisers?
The incentive is payable over 10 years in the form of a corporate income tax credit and is dependent on the company adding jobs in Utah, most likely in West Jordan, South Jordan or Murray.
Merit could have chosen to grow its business in such locations as Virginia, Texas or Ireland, where it already has operations, said Chairman and CEO Fred Lampropoulos. He added that Ireland would have been a lower-cost option, but an expansion in Utah was easier from a logistics standpoint.
Lampropoulos said the incentive helped convince company leaders to select Utah, where it already employs about 1,200 of its worldwide work force of 1,900.
Merit’s CEO explained that the new jobs will be added in many different sectors, including engineering, research and development, and assembly.
GOED board members unanimously approved the incentive and said the deal makes sense on many fronts.
Merit, which received a $1 million grant from the state for an earlier expansion in 2004, has hired 225 people worldwide in the past year, including 100 in Utah.
Board members noted that the company pays above-average wages and provides health insurance coverage.
“This is a Utah-based company that has been growing and has made significant contributions to the state,” said Derek Miller, managing director of GOED.
GOED board member Jack Brittain, vice president for technology venture development at the University of Utah, said the medical products and technology sectors in which Merit operates are extremely important to the state.