With the strong support of Ohio Gov. John R. Kasich and recent legislation passed by the state's General Assembly, Diebold, Inc., a provider of integrated self-service delivery and security systems and services announced plans to construct a new, consolidated corporate campus which will form an expanded world headquarters in the Akron/Canton, Ohio region. If approved at the relevant state and local levels, the completed headquarters project will help drive the company's need for a truly world-class facility that better aligns the organization, stimulates process efficiencies and enhances our ability to recruit and retain top-tier talent - all while continuing to make a significant economic contribution to the region Diebold has called 'home' for nearly 150 years.
Beginning in July 2009, Diebold performed a broad analysis of how best to consolidate its existing operations located in Summit and Stark counties to maximize the company's capabilities and create an optimal, single-campus workplace environment for its area associates. As a result of this analysis, which included discussion with officials in other states, Diebold plans to combine five of its current locations into a single location in the Akron/Canton region.
The consolidated facility will house 1,500 of the company's northeast Ohio-area employees. Diebold is currently considering a handful of sites for this construction and is in negotiation with the respective property owners. Each site is located in the Akron/Canton region.
During Diebold's review process, the state of Ohio presented a combination of compelling resources to the company. These resources, primarily in the form of loans and tax credits, could be used to assist the company in the development of a new or renovated headquarters facility. To ensure Diebold remains headquartered in Ohio, the State committed approximately $56 million in tax credits, loans and other incentives. Pending approval by relevant state and local government boards, Diebold will receive approximately $100 million in total related incentives from state and local entities.
To qualify for these incentives, Diebold will need to retain approximately 1,500 jobs in Ohio for 18 years. The company expects to spend about $100 million on the facility consolidation project, roughly equal to the total value of the planned incentive package.
Diebold employs approximately 2,000 associates across the state of Ohio with an annual payroll of about $125 million. The company and its employees paid more than $12 million in local and state taxes last year. According to third-party research commissioned by the company, Diebold will have an annual economic impact on Ohio of approximately $480 million during each of the next five years.
"We are committed to strengthening our competitive position, enhancing our role as a global leader in the industries we serve and continuing to serve as a productive member of the community. Diebold hosts thousands of global customers and employees at its headquarters during a typical year. A new world headquarters will serve as a true centerpiece to our global company -- as well as the surrounding region -- and allow Diebold to continue making a beneficial economic impact in Ohio," said Thomas W. Swidarski, Diebold president and chief executive officer in a prepared statement. "The commitment we received from Gov. Kasich and the state of Ohio sends a clear signal that the state is dedicated to companies like Diebold - companies that have a long, productive history in Ohio, value the state's talent pool and have a strong desire to continue to build and grow here. We are extremely grateful to Gov. Kasich and the General Assembly for providing the support needed to help ensure Diebold's future in Ohio."
The new Diebold corporate campus will comprise of the company's headquarters-based operations, research and development, hardware and software engineering functions, and sales and marketing for the company's financial self-service, security and integrated services businesses. The facility will also house the company's corporate financial and administrative operations, customer service and event monitoring centers, and employee training and education functions.
