Tyler City Council approves tax abatement
POSTED: Wednesday, July 10, 2013 - 10:27am
UPDATED: Wednesday, July 10, 2013 - 10:44am
Tyler, Texas (KETK) — Wednesday, the Tyler City Council approved a tax abatement agreement with VME Process, Inc., a company that was founded in Tyler in 1985 and supplies complete process systems for both onshore and offshore customers in the oil and gas industry. The agreement allows for a three-year 100 percent abatement for a $3.6 million investment that could result in 65 new jobs in Tyler within four years.
VME currently has 31 employees in two Tyler locations. One American Center on SSE Loop 323 houses engineering and technical support; Fabrication is located at 9915 Hombre Drive. VME is an international company with operations in Singapore, Malaysia, Indonesia, Brazil, the Netherlands, as well as Houston.
VME wants to expand its domestic fabrication capabilities and supply oil and gas equipment to the shale gas market in Texas, Oklahoma, Louisiana, and Colorado. They acquired the 128,000 square feet former CB&I fabrication facility at 3733 Shiloh Road. This larger building would increase the fabrication space from 10,000 to 119,000 square feet. The new property has 9,000 square feet of office space that would house VME’s corporate offices.
With the new facility, the company intends to fabricate a larger percentage of its overall process equipment and skid-mounted fabrication business in Tyler. Some of the internationally sold equipment can be manufactured in Tyler, nearly doubling the local output.
The new facility will also expand VME’s offering and capabilities in the domestic oil and gas industry. Having both onshore and offshore experience in crude oil separation, crude oil treatment, and gas processing, VME plans to expand its products and services to the shale gas market and the deep water offshore market. Marketing efforts for this expansion will commence immediately, and the company plans to offer these products at the first of next year. Additional equipment and personnel will be required to expand into these newer markets, so VME proposes to invest $3.6 million in equipment and plant renovations and hire up to 65 new employees within four years. Current full-time employment is 183 worldwide, not including contract personnel.
Phase I (2013-2014) includes $1.6 million to move to the new facility, make renovations, purchase new equipment, and add 25 new employees. Phase II investment (2015-2016) is expected to be around $2 million, and add 40 more jobs, for a total of 96 Tyler employees.