Walker, Hogan have said state does not plan to offer incentives to Foxconn suppliers
“In Wisconsin we’re not building a factory. You can’t use a factory to view our Wisconsin investment,” Louis Woo, a special assistant to Foxconn chairman Terry Gou and a key negotiator in the Wisconsin deal, told Reuters.
Bloomberg reports that Woo said there were no plans to scrap the facility altogether but that the company was reconsidering what operations might be best for the site.
Woo told Reuters that Foxconn couldn’t compete in the US TV market if it used domestic labor to build LCD panels — something that outside commentators have previously noted. “In terms of TV, we have no place in the U.S.,” said Woo. “If a certain size of display has more supply, whether from China or Japan or Taiwan, we have to change, too.”
Foxconn was given exemptions from environmental regulations and subsidies worth $4.1 billion to create manufacturing jobs in Wisconsin. However, ever since the flurry of publicity with which the deal was announced (including a photo-op with President Trump, former Wisconsin Gov. Scott Walker, and Gou breaking ground on the new site), the terms of the arrangement have been continually downsized. It’s not clear how much further they may be changed.
With Foxconn deciding to “Opt Out” of funding the required Billion Dollar investment in the Corning Glass manufacturing facility, Corning Glass turned to then Governor Scott Walker and asked for the Subsidy. Walker said – “NO” – thus effectively killing the project on May 1, 2018, placing the WEDC contract in default.
Foxconn: Top official says Wisconsin will not provide glass-maker new financial incentives
ADISON – The state won’t provide any new taxpayer subsidies to lure a key glass supplier to Foxconn to locate in southeastern Wisconsin, the state’s top jobs official said Tuesday.
In an interview, the head of the Wisconsin Economic Development Corp. said state taxpayers have maxed out on their contribution to the Foxconn project, including related businesses such as Corning Inc., which could bring hundreds of additional jobs to Racine County.
WEDC Chief Executive Officer Mark Hogan said that the state had already done all it needs to do to win those jobs by offering billions of dollars in incentives to Foxconn Technology Group of Taiwan. Foxconn could share those incentives with Corning and other suppliers, but the state would not expand these subsidies to get jobs that were part of the original deal and analysis done last year, he said.
Hogan made his statements after Corning’s CEO had said his company would need additional help from Foxconn or another source before coming to Wisconsin.
That’s it – end of story.
Former Governor Walker and his Administration made the call to allow Foxconn to default on the WEDC contract. At that point, the operations currently in progress at Mount Pleasant, Caledonia, and Racine County should have ended immediately. But oddly enough, they didn’t, while public officials lied and claimed “The Project” was really going to happen.
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