Schneider Electric, a French energy technology company which employs over 130,000 worldwide, will add another facility to its network of research and development hubs which includes Grenoble (France), Bangalore (India), Monterrey (Mexico) and Shanghai (China).
The European giant is planning to consolidate all existing Massachusetts divisions in a new 235,000-square-foot research and development center in Andover, where as many as 730 employees are expected to relocate by the end of this year. As reported by the Eagle Tribune, the company plans to invest nearly $30 million in renovating an empty 160,000-square-foot office building in Andover and construct another facility of around 70,000 square feet.
Owned by Leggat McCall, a private real estate company based in Boston, the office facility (pictured) is located at 800 Federal Street and has been vacant for almost seven years. According to public records quoted by the Boston Business Journal, in 2010 Leggat paid $2.9 million for this property and another $5.6 million for another site located at 600 Federal Street. Two years later, the real estate company and Schneider Electric inked a lease agreement for the office building.
It is estimated that the new research and development center will create around 600 new jobs in Andover and attract other businesses in the town. To help Schneider Electric with this move, the township is working on a Tax Increment Financing agreement that would grant Schneider Electric a tax exemption between 5 and 100 percent of the value added to the property through new construction or significant improvement. According to the Tribune, Schneider Electric’s new research and development center will be partly financed by a $1.2 million Tax Increment Financing agreement over the next five to ten years, while the facility will generate at least $184,000 in annual property tax revenue for the town.
Image courtesy of Google Maps