Brice Wallace
A power systems company is ready to spark some economic growth in Logan and North Logan, committing to create up to 3,130 jobs over the next nine years.
Electric Power Systems Inc., based in North Logan, will build at least two buildings near the Logan Cache Airport straddling Logan and North Logan and use more than 200,000 square feet to manufacture battery cells.{mprestriction ids="1,3"}
The company, also known as EP Systems, made the announcement after being approved for a tax credit incentive of $69.9 million over nine years by the Governor’s Office of Economic Opportunity (Go Utah) board.
“We’re thrilled to continue to expand our footprint in the state of Utah,” said Nathan Millecam, president and CEO. “After spending the past five years developing our battery technology here in Utah, we’re excited to further grow our local economy by building a high-technology industrial base.”
The company provides high-voltage, high-power, certifiable and scalable power systems for the aviation industry. It is also involved in energy storage and propulsion, serving primarily aerospace and defense, with additional reach into automotive, marine and industrial uses.
Investors include Boeing, Safran and JetBlue Technology Ventures, and customers include Diamond Aircraft, NASA, the FAA, Boeing, Safran, Bell Textron and Embraer.
The expansion project investment is expected to top $200 million. New state wages generated from the project are estimated at more than $867 million over nine years, and new state tax revenue is estimated at $279.5 million during that time. The new jobs will pay an average of $74,777.
EP Systems has about 130 employees in Cache Valley. Presentation slides at the Go Utah board meeting project the company’s total workforce to reach nearly 10,000 by 2030.
“We will have to become a global company, so it’s not all going to necessarily the state of Utah,” Millecam said. “We’ll need a presence in Asia and Europe and whatnot, but we see Utah as headquarters … so we do plan to put a substantial footprint of personnel here in the state of Utah.”
The manufacturing jobs will be very high-skilled jobs, he said. Of the labor force growth expectations, “we’re confident that we can hit it and we’re really excited,” he said. “We’re really excited about the labor force here. I think one shoutout to you guys and to this whole state is we’re so thrilled with the people that we’ve found in the state of Utah. Your people are wonderful, they want to work hard, they want to be part of something big, they’re innovative, they’re creative. [It’s] a great, great labor force that you folks have provided for us.”
EP Systems designs, develops and builds battery modules that can be integrated into large, complex systems. It has eight aircraft flying today and its systems will be part of “electric vertical takeoff and landing vehicles” — flying cars, in other words.
Electric motors, modules and new technologies are changing the mobility world, he said. “If you have a really efficient, low-cost propulsion system, you can do a lot of cool things: You can fly, you can win wars, and you can create a global community,” Millecam said.
“This is really exciting,” Susan Johnson, acting Go Utah meeting chair, told company officials. “It’s very exciting, super-exciting, on so many metrics.”
Kirk Jensen, Logan’s economic development director, said it’s been exciting to watch the company grow.
“This is a real difference-maker for Cache Valley, and we’re just really supportive,” he said. “The technology is fascinating, so to have a company in Utah, particularly in Cache Valley, that’s on the cutting edge of doing some really cool things in the aviation industry, we can’t be more than super-excited about that.”
Logan, North Logan and Cache Valley are “just completely behind this company and excited to see where they go,” Jensen said.
“We’re doing everything that we can,” added North Logan Mayor Lyndsay Peterson, “to facilitate them expanding because we see the value in the types of jobs that they provide to our community.”
“EP Systems is a pillar in Cache County’s economy,” Dan Hemmert, Go Utah’s executive director, said in a prepared statement. “We’re excited — though not surprised — to see the company continue to thrive. This expansion will allow EP Systems to develop and manufacture state-of-the-art batteries in Utah. EP Systems’ innovative battery cells are a game-changer, especially in the aerospace industry.
“EP Systems’ expansion will help Utah grow its battery-powered industry,” said Theresa A. Foxley, president and CEO of the Economic Development Corporation of Utah. “The company has established itself as the leader in the electrified aeronautics space, and we’re proud to call them a Utah brand.”
Go Utah does not provide upfront cash incentives. Each year that the company meets the obligations in its contract with the state, it will qualify to receive a portion of the new, additional state taxes that the company paid to the state.
EP Systems had been awarded a nearly $1.7 million state incentive in May 2017, tied to the creation of up to 128 jobs over seven years. At the time, the company was based in Industry, California.{/mprestriction}
