Sabic Innovative Plastics is seeking a tax incentive from the city of Pittsfield, Mass., that will allow the engineering resins maker to improve its headquarters there.
The incentive would give Sabic IP a 10-year tax incentive on the value of property improvement, starting at 100 percent then gradually lessening to 10 percent for its final five years. Sabic IP's parent firm - Saudi Basic Industries Corp. of Riyadh, Saudi Arabia - bought GE Plastics from General Electric Co. earlier this year, and now is leasing its headquarters and polymer processing research facility from GE.
Sabic IP has ``a long-term lease arrangement'' with GE, Sabic IP spokesman Chris Tessier said in a telephone interview. Tessier declined to reveal the length of that arrangement, but said that Sabic IP has an option to renew it.
In filings with the city, Sabic IP officials cited possible spending of $50 million on personal property acquisitions and $10 million in building improvements in the next three years. Tessier said those numbers should be looked at as ``ballpark estimates'' and that Sabic IP has not decided how much it will spend or what projects that spending will cover.
``These investments could include anything from remodeling to office furniture to [information technology] infrastructure,'' he said. ``We're still committed to Pittsfield and we're exploring how to better leverage our headquarters.''
Sabic IP already has added at least 25 new jobs in Pittsfield in the past three months. Most of those new positions cover services formerly supplied by GE, such as human resources and other support functions, Tessier said.
A Pittsfield City Council subcommittee passed the tax incentive Nov. 26 and it will be up for approval by the full council Dec. 11.