BYK Business Incentive Agreement could lead to expansion, jobs

GONZALES – BYK USA Inc., a company of BYK Additives & Instruments, reached a business incentive agreement with the City of Gonzales and Gonzales Economic Development Corporation, in a special joint meeting this week.

In May, GEDC staff received correspondence notifying staff of a potential $50 million to $75 million expansion to BYK’s Gonzales Facility. The initial correspondence also included the estimated local economic benefit for a potential $150,000 investment. The company sought the assistance of the GEDC, City of Gonzales, as well as other taxing entities.

Both GEDC Chief Executive Officer Genora Young and Gonzales City Manager Sean Lally met and corresponded with representatives of Gonzales County, Gonzales Independent School District, the Gonzales Hospital District, Office of the Governor, Workforce Development and State Representative John Cyrier’s office.

Tuesday night, GEDC and city council both voted unanimously to approve the investment.

"It is because of the efforts of many that the City of Gonzales is ready if accepted as the host city, to welcome BYK’s proposed expansion of $50 million to $75 million in new construction. This process included many meetings between myself, our city manager, BYK, and our consultants. What we have produced is a potential model for success," Young said. "This effort will directly affect our city by creating new and retaining existing positions at BYK. Secondary, the construction work will bring labor into Gonzales which will spend money and increase our sales tax revenues."

Young said the agreements also asks for BYK to use best its efforts to employ up to 50 percent of any new staff with county residents, as the goal of this development is to keep and create a total of 130 full-time jobs.

"My feelings are positive that BYK will see the synergy between BYK’s existing management, our agreement partners, and the city. We have many amenities that make business expansion attractive to both the city and BYK. We offer qualified labor, business-friendly culture and the opportunity to create new synergies between businesses," Young said. "In light of these facts, it is my sincerest hope that the upper management of BYK sees the value of Gonzales to be their headquarters for North America expansion."

GEDC Board President Crissy O'Neal agreed with Young and said both the City of Gonzales and GEDC worked tirelessly for many months to develop this competitive agreement to present to BYK USA Inc.

"We are pleased that our board and the city council approved the agreement at our joint meeting. An expansion at BYK is good for the city with increased property values, retention of existing jobs and the potential increase in employment and salaries," O'Neal said. "I would like to commend Genora Young as she was the go-to person on this collaboration. Her extensive knowledge of incentives deals certainly lead us in the right direction."

BYK officials said the agreement reached Tuesday night is an important milestone as BYK continues to move forward with the potential investment and expansion one of its facilities.

Competitors for the expansion of this project are Gonzales, Kentucky, Germany, and China.

BYK expects to reach a final investment decision by the end of 2017.