Firm says it will open Boise factory, hire 146 workers at average $50,000 yearly pay
A Chicago company that makes construction boards and decking from recycled wood and plastic waste announced Thursday that it will open a manufacturing plant in Boise.
The Azek Co., which has eight plants in Ohio, Pennsylvania and Minnesota, plans to renovate an existing building on Gowen Road in Boise and have the factory fully functional in 2022.
The company plans to hire at least 80 workers in the next year and an additional 100 people over the next two to three years. To qualify for a state tax incentive, it has agreed to hire at least 146 people making an average yearly wage of $50,479, a state official said.
“We are proud The Azek Co. is choosing Boise for their new location,” Idaho Gov. Brad Little said in a news release. “Their history in manufacturing innovative and sustainable products with a focus on limiting waste and advancing recycling capabilities is a perfect match for Idaho’s business culture and environmental priorities.”
During fiscal 2020, Azek diverted about 400 million pounds of wood and plastic waste from landfills. By 2026, the company hopes to reclaim 1 billion pounds of waste annually.
Azek’s products are made from up to 80% recycled materials. Azek makes products under the TimberTech, Versatex, Scranton Products and Vycom brands. They’re used in homes and commercial buildings.
“Our values drive how we work,” Jesse Singh, the CEO, said in the news release. “When deciding on a location for our new facility, we looked for a city that matched our values by putting sustainability at the heart of its operations and growth, as well as one that offered a highly skilled pool of candidates to join the Azek family.”
The Boise plant is a key part of a $180 million expansion program. Azek expects to reap about $1.9 million from the Idaho Tax Reimbursement Incentive, said Matt Borud, a spokesperson for the Idaho Commerce Department. The credits are issued after a company meets job and wage thresholds.
Hiring 146 people over a two-to-three-year schedule at an average $50,479 per year is expected to bring the incentivized 10-year term payroll to about $67.7 million.
The incentive will provide Azek with a 21% credit for 10 years on its sales, payroll and income taxes.
“We estimate their decision to locate in Idaho will deliver $16.3 million in new total state revenue during the initial project term,” Borud said in an email.
Boise stood out among other cities because of its forward-thinking approach to combating climate change, Azek spokesperson Lacey Ehrlich said by email.
Boise has set a goal to provide 100% renewable energy in all homes and businesses by 2035. The city is working to develop a climate action plan to mitigate the effects of climate change.
“That’s ambitious, but we believe in setting ambitious goals and then behaving in a way that helps you achieve them,” Ehrlich said.
Azek said the company is exploring several green initiatives at the new plant, including LEED certification, solar and wind energies, high-efficiency water and lighting systems, and the incorporation of smart site management.
“I’m excited to welcome a new company that will create great jobs and has a strong commitment to a dynamic and sustainable future,” Mayor Lauren McLean said in the release.
Azek reported $212.3 million in sales in its first quarter, which ended Dec. 31, up from $166 million a year earlier. Residential sales, which account for 87% of total revenues, rose 37%.
This story was originally published March 4, 2021 at 1:06 PM.
