IP expansion expected to add jobs, $225M to local economy - WMC Action News 5 - Memphis, Tennessee

IP expansion expected to add jobs, $225M to local economy

(WMC-TV) - One of the city's biggest employers is here to stay thanks to the approval of International Paper's $60 million tax break and a company expansion.

So what does this mean for you?

It means more jobs in Memphis -- as well as more money being pumped into the local economy.

International Paper's Senior Vice President Tom Kadien says the company will soon expand its Poplar Avenue campus and add more than 100 jobs.

"Memphis is our home, where we've been for 25 years, it's home to our employees," said Kadien. "We house over 2,300 families here that like being a part of Memphis."

Kadien says the company's first choice has always been to stay in Memphis.

Even though staying here was the most expensive option, he and others were able to prove to the company's board that the tax savings would make it a less expensive decision.

"We're still paying taxes, we'll be paying more taxes in the future but over 15 years, IP will get a $57 million, less than $4 million a year tax break," explained Kadien.

Later this year, IP will build a fourth tower at its Poplar Avenue headquarters.

The new tower will be nine stories tall and house 500 to 600 employees.

The $100 million project will relocate employees from its Willow Lake campus and create new positions.

Over the next 15 years, International Paper's expansion is expected to pump more than $225 million into the city and county economy.

That expansion, which means IP will employ nearly 3,000 workers, is set to begin sometime in August.

Copyright 2013 WMC-TV. All rights reserved.

Powered by Frankly