Henkel to combine hundreds of Wilton, Arizona jobs at new office in Stamford
Oct. 06, 2016
Henkel is relocating the headquarters of laundry detergent giant Sun Products to Stamford from Wilton, while bringing hundreds more jobs east from Arizona in a major win for Connecticut.
Henkel spent $3.6 billion in June to acquire Sun Products, which was created in 2008 via a private-equity-backed spinoff from Unilever operations in Trumbull. Henkel is based in Germany and has its North American headquarters in Rocky Hill where it had about 420 jobs according to the most recent records on file with the state of Connecticut.
With Sun already employing about 200 people in Wilton, Henkel will create an additional 266 jobs in Connecticut according to the office of Gov. Dannel P. Malloy, giving the governor another significant economic development win after an announcement last month to keep the headquarters of Lockheed Martin subsidiary Sikorsky Aircraft in Stratford, the largest employer in Southwest Connecticut.
Henke’s consumer hoods headquarters has been located in Scottsdale, Ariz., but with the recent acquisition of Sun Products, the company has decided to combine those operations in Connecticut, with the status of its Sun workforce uncertain given the company’s Rocky Hill offices. Some 375 Arizona employees will be offered the option of relocating to Connecticut, according to the Phoenix Business Journal.
Stamford has several office buildings with available space to accommodate the number of people Henkel is bringing together in Stamford, including downtown offices formerly occupied by UBS and General Reinsurance, and the sprawling former headquarters of Pitney Bowes in the city’s South End.
With brands like All, Snuggle and Wisk, Sun Products is the second largest seller of laundry products in North America, with the market dominated by Procter & Gamble. In the Henkel move from Arizona, Stamford will assume status as the head office for Dial soaps, one of many Henkel personal care and beauty products sold on store shelves coast to coast as well as a broad portfolio of adhesives, sealants, and surface treatments for consumer and industrial use.
“The decision to relocate is a result of our evolving business needs and we are thankful to Arizona and its leaders for many years of partnership and support in the community,” said Jens-Martin Schwaerzler, president of Henkel Consumer Goods North America, in a written statement. “We are looking forward to the future, building on our more than 20-year partnership with the leaders and communities of Connecticut.”
To fund the move, the company will participate in the state’s First Five Plus program, which is operated under the state Department of Economic and Community Development.
Under the program, the company will receive a 10-year, $20 million low-interest loan toward the relocation. It may also be eligible for up to $5 million in tax credits through the Urban and Industrial Sites Reinvestment Tax Credit program, which allows for a corporate tax credit of up to 100 percent of capital investment.
“When an international company of Henkel’s stature decides to relocate to our state, expand its operations, and create hundreds of new jobs, it sends a message to the rest of the world that Connecticut is serious about working with companies to grow, generate capital investment, and strengthen our economy for the residents of our state,” Malloy stated. “Henkel is a valued member of the business community - we are proud of their decision to relocate and expand in Connecticut and we welcome the company to our state.”
Henkel expects the relocation of its operations will start in the second quarter of 2017, with the process completed by the first quarter of 2018. It has yet to pick a specific site in Stamford.
“This is just another example of the positive business environment found here in the State of Connecticut and is reflective of Henkel’s confidence in Connecticut’s workforce talent,” Stamford Mayor David Martin said in a statement. “The City of Stamford has taken steps over the last few years to create a business climate that attracts companies like Henkel. I look forward working with them as a corporate citizen for years to come.”
Alex.Soule@scni.com; 203-354-1047; www.twitter.com/casoulman