L-3 Communications to Expand Again in Utah

Salt Lake City, UTAH — The Governor’s Office of Economic Development (GOED) announced the major Utah expansion of L-3 Communications, a multinational corporation that has current operations in the State.

“L-3 and its predecessor companies have played a vital role in Utah’s business community and economy since the 1950s.  We are honored that L-3 will spread its Utah roots and concentrate its growth in our state,” said Governor Gary R. Herbert.  “L-3 is one of the world’s leading defense contractors, and Utah – with our skilled and industrious workforce, our burgeoning defense and aerospace clusters, and our access to defense installations – presents an ideal environment for continued growth.”

 L-3 Communications, which has operations in 8 countries and 20 US states, is a prime contractor in command, control, communications, intelligence, surveillance and reconnaissance (C3ISR) systems, aircraft modernization and maintenance, and government services. Its Utah division, Communication Systems West, provides network engineering, software integration, hardware manufacturing, and test support services for the military/ defense market.

 “I cannot think of a better place to do business,” said Susan D. Opp, President of L-3’s Communication Systems -West.  “Utah has the combination of a skilled, well educated work force, excellent quality of life options, and state and local governments that promote business growth.  That is why our operation has continued doing business in Utah for over 50 years.”

Beginning in 2012, L-3 will begin the process of hiring up to 500 new workers as it expands its current facility in Salt Lake City. Those workers will be paid salaries that exceed 125% of the Salt Lake County average wage. The company expects to pay nearly $390 million in new state wages over the 10-year life of the expansion project.

“Utah’s aerospace and defense segment is among the State’s top-performing sectors,” said Spencer Eccles, executive director of GOED. “L-3’s expansion activities and the up to 500 new Utah jobs announced today show other companies in their industry that Utah is the place to locate a high technology business. Combined with the recent expansions of Boeing, ATK, ITT Exelis and Janicki Industries, it shows that Utah is continuing to grow its aerospace and defense industries.”

“L-3’s longtime presence in the military communications field and the Utah defense and aerospace industry has been key to this sector’s growth,” said Jeff Edwards, president and CEO of the Economic Development Corporation of Utah (EDCUtah). “EDCUtah is pleased this expansion opportunity allows L-3 to further cement their solid position in Utah.”

The GOED board of directors approved a one-time, post-performance EDTIF refundable tax credit of $5,526,682 over the 10-year life of the project. L-3 Communications has committed to hire up to 500 new employees at 125% of the Salt Lake County average wage, and will pay nearly $390 million in wages, while the State will gain over $22 million in new state revenue over the same period. L-3 estimates that it will invest approximately $6 million in capital for improvements related to the expansion in the near term.