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$10B WI Plant to Break Ground This Year

Friday, March 29, 2019

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Despite some uncertainty over exactly what is being built, Foxconn Technology Group announced last week that it is expecting to break ground on its $10 billion Racine County, Wisconsin, plant this year and plans to be up and running by the fourth quarter of next year.

With the timeline comes a call for bids.

Project History

In April 2018, Foxconn named Providence, Rhode Island-based Gilbane Building Co. (which has a Milwaukee office) and global firm M+W Group (Stuttgart, Germany) as its lead contractors on the 20 million square feet of building space that will eventually house a flat screen manufacturing complex and employ 13,000 people.

Officials announced the first round of contracts in early July, worth $14 million, that went toward a multi-purpose building on the site, which is now complete.

Nadkachna, BB-CY-SA 3.0, via Wikimedia Commons

Despite some uncertainty over exactly what is being built, Foxconn Technology Group announced last week that it is expecting to break ground on its $10 billion Racine County, Wisconsin, plant this year and plans to be up and running but the fourth quarter of next year.

Later that month, officials awarded nearly 40 more contracts, though those financial terms were not disclosed.

The year opened with a Jan. 17 letter in which the company disclosed that it would not make the threshold of job creation needed in order to receive about $9.5 million in tax credits.

Foxconn is under an agreement with jobs agency Wisconsin Economic Development Corp. to create up to 13,000 jobs over the course of construction, which would then qualify the company to be awarded up to $3 billion in tax credits.

The contract with WEDC extends well beyond the completion of construction, however. Over the first 15 years of the contract, which ends in 2027, the minimum hiring number dips to 10,400 and the company must continue employing that many people through 2032.

About a week later, the company noted that it was no longer sure that the facility would be solely focused on making flat screens. According to a report by Reuters, which spoke to Louis Woo, special assistant to Foxconn Chief Executive Terry Gou, the company will now focus on creating a “technology hub” rather than LCD manufacturing.

While it promises to maintain the numbers in terms of job creation, the type of jobs that will now be up for grabs will reportedly be totally different, and will include more research and development and design positions rather than manufacturing jobs.

Woo cited the cost of labor in the United States for the shift.

Bidding and Construction Plans

Regardless of what will eventually go into the plant, construction is slated to start within the next couple months and two bid packages are now open through Gilbane, including site utilities and site roadways and associated storm drainage.

Foxconn says that it will be issuing initial bid packages for construction of the manufacturing facility and ancillary buildings in May.

In keeping with its “Wisconsin First” commitment, details of the bid packages and information about how contractors can participate will be shared at a series of information sessions, the first of which will be held on April 3 and April 10. Interested companies are encouraged to sign up to receive information about the upcoming sessions.

   

Tagged categories: Bidding; Construction; Contracts; Good Technical Practice; NA; North America; Ongoing projects

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