- SmileDirectClub will open a $37 million, 150,000 square foot manufacturing facility in Kyle, Tx.
- This project will add 850 new jobs with an average wage of $40,000
- The project received a $3.3 million incentive package from Texas Enterprise Fund, Kyle, Hays County, of which $2.2 million was paid by the State.
- SmileDirectClub is a 5-year-old startup with $423 million in revenue for 2018.
SmileDirectClub Inc. plans to open a $37 million, 150,000 square foot manufacturing plant in Kyle, Tx adding 850 new jobs.
According to the SmileDirectClub Hiring is set to begin as soon as next week, with positions having an average annual salary of around $40,000 — will include everything from production workers to engineers and 3-D printing technicians.
“We’ve got a pretty aggressive timeline” to get the new factory up and running, said Dan Baker, global head of supply chain for SmileDirectClub’s manufacturing subsidiary, called Access Dental Lab. “We’re delighted to be here and to find a home in a state with a really talented workforce.”
SmileDirectClub, a 5-year-old startup based in Nashville, Tenn., that held an initial public stock offering last month, sells clear teeth aligners directly to consumers, eliminating in-office visits to traditional orthodontists by using so-called teledentistry, or remote consultations and treatment over the internet.
It employs an estimated 5,000 people currently, according to filings with the U.S. Securities and Exchange Commission, and the planned Kyle plant will be the only manufacturing facility it has outside Nashville.
A total of about $3.3 million in taxpayer-funded incentives from the state, the city of Kyle and Hays County helped lure the company to Kyle, with the bulk of the money — $2.2 million — coming from the Texas Enterprise Fund, which is deployed by the state to provide a final carrot to help land projects in competitive situations with other regions of the country.
To get the state’s money, SmileDirectClub must create a minimum of 440 jobs and make “more than” $36 million in capital investments at the site, according to Gov. Greg Abbott’s office.
SmileDirectClub said it plans to invest $36.8 million in the factory, most of which will be spent within the next 12 months.
SmileDirectClub has been growing rapidly, and its revenue ballooned to $423.2 million in 2018 from $20.6 million in 2016.
The city of Kyle and Hays County have agreed to rebate 50 percent of SmileDirectClub’s property taxes at the facility over an eight-year period — with the city incentive valued at a total of about $660,000 over the duration of the deal and the county incentive valued at about $475,000. Both agreements call for SmileDirectClub to step up hiring relatively quickly and to hit an agreed-upon minimum of 850 employees by the end of the deal’s third year.
About The Hays Logistics Center
The Hays Logistics Center is part of a 108-acre industrial park called the Hays Commerce Center.
Under a 2014 incentive deal, the city of Kyle agreed to provide its developers — Austin-based HPI Real Estate Services & Investments and Dallas-based Hillwood Properties — with a taxpayer-funded grant of up to $10 million, to be paid out in annual increments based on a portion of the increased valuation of the site.
The grant is intended to reimburse the developers for roads, utilities, and other infrastructure that they built at the site on speculation.
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