More agreements needed before company commits to staying in state
The Council on Development Finance unanimously approved financial packages for DuPont spin-off Chemours and Perdue Agribusiness at a meeting today.
Chemours sought a Strategic Fund Performance grant of up to $7.2 million and a capital expenditure grant of $695,000 for the company’s headquarters.
The council, largely made up of representatives from the private sector, makes its recommendations to the Director of the Delaware Economic Development Office, Bernice Whaley.
Whaley emphasized at the meeting that the financing package does not ensure that Chemours will stay in the state. She said the loss of the 900 jobs in the state would lead to spin-off losses totaling 3,400 jobs.
Chemours CEO Mark Vergnano told the council the company is making progress in meeting challenges and “getting on solid ground.”
“Our first choice is to stay in Wilmington,” Vergnano said, mentioning the Rodney Square area on more than one occasion.
Details of Chemours plans were not revealed, although speculation has centered on renovating the company’s current headquarters in Wilmington. Chemours swapped space with DuPont Co., which moved to Chestnut Run Plaza, just outside Wilmington.
Vergnano said the company is still working with the City of Wilmington and private developers on a project for the headquarters.
The state has been engaged in a wide-ranging effort to keep Chemours, a the successor of DuPont’s companies in the state.
A change in corporate income tax, said to be tied to retaining Chemours, was hastily passed by the General Assembly and signed by Gov. Jack Markell.
DuPont and Dow are heading to a merger, barring antitrust issues. Following that merger, the combined companies will be split up into three publicly traded entities. Two of those companies will be based in Delaware.
Perdue Agribusiness received an OK for a $1.1 million for a Strategic Fund Performance grant and up to $1.5 million for the costs of relocating its headquarters to Delmar. The greenfield site is off Route 13. The project has been in the works for upwards of a decade. Employment would total about 150.
The company works in the areas of grain marketing, oil seed production, animal nutrition and other areas. The business comes out of work by the company to secure feed for poultry.
State Agriculture Secretary Ed Kee said the relocation would provide a big boost for the state. Delaware has the most employees of any state where the company has operations.
He noted that Perdue Agribusiness is one of the nation’s largest grain trading companies. The company operates as an independent subsidiary of Perdue.
The council met at the Buena Vista conference center, off DuPont Highway, south of New Castle.
