Dec. 12--A year after Archer Daniels Midland lost a bid to keep $30 million that its employees would pay in taxes to Illinois, the agricultural giant said Thursday it will locate its coveted technology and support center in Kentucky.
ADM said it chose Erlanger, about 10 miles south of Cincinnati, after Kentucky offered $5.2 million in tax incentives and benefits. In return, ADM pledged to recruit in Kentucky to fill about 200 jobs.
Unable to secure the tax breaks from Illinois, ADM moved its corporate headquarters to downtown Chicago anyway, but kept open its options for the tech center. Mayor Rahm Emanuel had expressed interest in landing the center because it would enhance his vision of Chicago becoming a top location for business technology.
Emanuel's office didn't have an immediate comment Thursday.
The center will be housed on the same campus as Wild Flavors, a Swiss-German natural ingredients supplier ADM acquired this year for $3 billion.
"We will also be able to recruit from a strong local talent pool in northern Kentucky, and we will have quick and easy access to a major airport," Marty Schoenthaler, ADM's chief information officer, said in a statement.
Dave Roeder, a spokesman with the Illinois Department of Commerce and Economic Opportunity, said the state also offered tax incentives to ADM for the center but declined to say how much they were worth. He said the package was part of private negotiations.
Kentucky officials said they were thrilled with the company's decision.
Erlanger Mayor Tom Rouse said in a statement: "200 new high-paying jobs will help our community continue to grow and thrive,"
ADM said the center will open in the second half of 2015 with a mix of about 100 contractors and ADM employees.
Ray Young, ADM's chief financial officer, testified last year that the $30 million in tax incentives it sought over 20 years didn't appear to be much for a $90 billion corporation. ADM, he said, has been successful because it has been "minding its pennies and nickels and dimes over the years in order to make sure that we remain competitive."
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