By Gary Budzak
Delaware City Council recently approved an amended Community Reinvestment Area agreement with the Henkel Corporation at 421 London Road.
According to the ordinance, the amended agreement would reduce Henkel’s abatement by 10 percent and amends their payroll requirement full-time employee counts.
“Due to the slow economic recovery of their customers and reduced orders, Henkel has had difficulties reaching the goals set by their 2010 CRA agreement,” said Economic Development Director Sean Hughes.
The company has hired 5 of the 10 full-time employees it agreed to in 2010, and has retained 42 full-time employees.
“The company expects future growth, but cannot commit to increased employment and payroll at this time,” Hughes said.
The staff report said the city’s Tax Negotiation Committee met with Delaware Plant Manager Robert Haugh, and they agreed on reducing the CRA abatement by 10 percent to 40 percent for the remaining five years of the abatement, for a total of $21,032.
Henkel was founded in 1876 and is headquartered in Dusseldorf, Germany. It employs 47,000 employees worldwide, producing laundry and home care products, beauty care products and adhesive technologies.
Council unanimously approved the ordinance on its second reading on July 28.
Gary Budzak may be reached at 740-413-0904 or on Twitter @GaryBudzak.