Gov. Rick Perry today announced Toyota Motor North America is relocating its headquarters to Plano. The more than $300 million capital investment is expected to employ nearly 4,000 people upon completion, and compliments the company's existing Texas operations. In exchange for Toyota's commitment to create these new jobs and capital investment in Texas, the state has offered Toyota an investment of $40 million through the Texas Enterprise Fund (TEF).
"Over the past decade, Texas and Toyota have developed a strong partnership that has resulted in good-paying jobs for thousands of Texans," Gov. Perry said. "Toyota understands that Texas' employer-friendly combination of low taxes, fair courts, smart regulations and world-class workforce can help businesses of any size succeed and thrive. We're proud that both the Tundra and Tacoma bear the words "Made in Texas,' and we're excited our state will be the nexus for Toyota's North American operations moving forward."
Toyota's Texas operations include its $2.3 billion manufacturing facility in San Antonio which supports 2,900 jobs. Combined with its 21 on-site suppliers, Toyota supports 6,000 jobs in San Antonio. The company cited a number of factors in choosing a location for its new headquarters, including the TEF investment, Texas' low taxes, smart regulations, fair courts and skilled workforce as factors in its decision.
The project is supported by an investment from the TEF, which offers companies incentives to create jobs and invest in Texas. When completed, it will be one of the largest job creation projects in TEF history. The agreement is contingent upon the finalization of contracts and a local incentive agreement.
The Legislature created the TEF in 2003 and reauthorized the fund in 2005, 2007, 2009, 2011 and 2013 to help ensure the growth of Texas businesses and create more jobs throughout the state. TEF projects must be approved by the governor, lieutenant governor and speaker of the House. The fund has since become one of the state's most competitive tools to recruit and bolster business. To date, the TEF has invested more than $558 million and closed the deal on projects generating nearly 74,500 new jobs and more than $24 billion in capital investment in the state.