Baxter Healthcare Corp. accepted about $3.3 million in state and local government incentives tied to the expansion of its Alabama plant. In exchange, the company agreed to hire and keep at least 200 employees through last year.
This month, with the decade-long deal done, the company is closing the facility in Opelika and laying off 459 employees. So was this a good deal for Alabama? For Opelika?
The small city paid Baxter $1.3 million in cash incentives over the last eight years, in addition to providing other tax breaks, according to city records obtained by AL.com.
The medical device manufacturer also received $2 million from the state, said Stefania Jones, spokeswoman for the Alabama Department of Commerce.
Baxter was eligible for more than $5 million in total cash incentives through its decade-long agreement with Alabama, Opelika and Opelika Industrial Authority, per a copy of the original 2014 agreement. In exchange, Baxter invested $270 million into expanding the facility that’s operated since the early 2000s, doubled the existing space to 400,000 square feet and doubled its workforce to 350 employees.
As of Nov. 30, Baxter is laying off hundreds more employees than it was incentivized to hire. That’s per a WARN notice reported Sept. 27, which major employers are legally required to file to notify the state that it plans to cut a lot of jobs. The company reported to Opelika that it employed 564 full-time workers at the Alabama plant, as of June 2022.