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Foxconn Taps Mortenson for Parts of $10B Project

Thursday, September 26, 2019

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Foxconn Technology Group recently announced that it has chosen Mortenson Construction (Minneapolis) to serve as construction manager for two facilities that were just approved as part of the company’s $10 billion LCD manufacturing plant in Mount Pleasant, Wisconsin.

The two projects at the Wisconn Valley Science and Technology Park are a Smart Manufacturing Center and a High-Performance Computing Data Center.

Mortenson has followed up with its own announcement issuing an Invitation to Bid for subcontractors interested in working on the core and shell portion of the manufacturing center.

Project Background

In April 2018, Foxconn named Providence, Rhode Island-based Gilbane (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 employ 13,000 people.

Images: Foxconn

Foxconn Technology Group recently announced that it has chosen Mortenson Construction (Minneapolis) to serve as construction manager for two facilities that were just approved as part of the company’s $10 billion LCD manufacturing plant in Mount Pleasant, Wisconsin.

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

However, this 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.

Shortly after, the company noted that it was no longer sure that the facility would be solely focused on making flat screens as originally pitched. According to a report by Reuters, which spoke to Louis Woo, special assistant to Foxconn Chief Executive Terry Gou, the company would 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.

Bid packages for the construction of the massive manufacturing facility began issuing in May and later that month Foxconn awarded $13 million in contracts for foundation-related work to C.D. Smith Construction Inc. Crews began pouring concrete in late June.

Also in early summer, officials awarded nearly 40 other contracts (the financial terms of which were not disclosed) and renderings for the property were released as well.

The area is designed by three Taiwanese companies that include JJP Taipei, Team Engineering Consulting and United Integrated Services, while the building shell is designed by Eppstein Uhen Architects in Milwaukee. Graef is the engineer of record and The Sigma Group is civil engineer. New York-based Exyte, which has specialization in clean rooms, is leading the design team.

In early summer, officials awarded nearly 40 other contracts (the financial terms of which were not disclosed) and renderings for the property were released as well.

A construction update was provided last month, which noted that walls are going up at the massive 1 million-square-foot plant.

About 200 workers have recently installed 400 precast concrete panels—with reports of up to 15 per day—to prep for the structural steel work, which is led by general contractor Gilbane Building Co., and was expected to begin the last week of August.

As of that update, $175 million had been awarded in contracts.

What Now

The two centers were approved earlier this month and are slated to support the smart manufacturing at the larger facility, the “Gen 6 Fab.”

Foxconn plans to build a 260,000-square-foot SMC located in Area 1 of the WVSTP. The SMC will be a high-mix, low-to-medium volume production facility that primarily manufactures components for server racks, according to the company.

The design for the HPCDC has not been set.

Mortenson is moving forward with subcontractors, announcing an invitation to bid on the core and shell of the SMC, seeking contracts for: earthwork, site utilities, asphalt, site concrete, landscaping, concrete reinforcing materials, concrete reinforcing install, SOG concrete, precast, steel, metal panels, roofing, overhead doors, glazing, skylights, exterior sheathing and air barriers, loading dock equipment, elevators, temporary fencing, masonry, testing services and concrete Redi-Mix materials.

Those interested in submitting bits need to first register with Mortenson to receive an official bid invitation email.

   

Tagged categories: Asia Pacific; Bidding; Contract awards; EMEA (Europe, Middle East and Africa); Latin America; Manufacturing Plant; North America; Ongoing projects; Program/Project Management; Project Management; Z-Continents

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