Milwaukee Tool plans to build a $100 million manufacturing campus in Menomonee Falls and separately expand its operation in Sun Prairie.
The projects will lead to the creation of 870 jobs by 2025, company and state officials announced on Tuesday. The Menomonee Falls campus will be built on a 65-acre site on North Flint Drive and will give the company the option to build as much as 2.5 million square feet of space for the manufacture of products designed at its headquarters in Brookfield. The land is also next to a building that Milwaukee Tool recently bought and is having remodeled.
The separate project in Sun Prairie, estimated to cost $7.5 million, will be for Milwaukee Tool’s Imperial Blades subsidiary, which makes oscillating blades and similar devices for use in various sorts of tools.
In 2016, Milwaukee Tool pledged to meet certain hiring and spending goals in return for the prospect of receiving state incentives. If, by 2021, it creates as many as 1,812 jobs in Wisconsin and spends $174.5 million on capital projects, it will receive as much $46 million in tax breaks from the Wisconsin Economic Development Corp., the state’s quasi-public economic-development agency.
WEDC began working with Milwaukee Tool in 2016 when the company was planning to add on to its Brookfield corporate headquarters. The state initially helped with the project by setting up an Enterprise Zone. The agreement allowed Milwaukee Tool to receive as much as $18 million in tax credits over five years if it created at least 592 jobs.
There have since been a couple of amendments to the original contract. Last year, the WEDC agreed to provide an additional $8 million in tax credits if Milwaukee Tool created 350 more jobs. The second amendment, approved this year, would provide $20 million more in return for the promised creation of 870 new jobs as part of the Menomonee Falls and Sun Prairie projects.