Fortune 500 personal computer manufacturer Gateway 2000 Inc. will build a $20 million manufacturing plant in Salt Lake City.
Gateway, known for its distinctive black-and-white cow motif, is the worldwide leader in direct marketing of personal computers.The announcement that Salt Lake City was picked for the new plant was made in a press conference Thursday in the governor's office with Robert Spears, senior vice president of the company, based in North Sioux City, S.D.
The plant is scheduled to be constructed on some 35 acres at the Landmark Industrial Park, which borders the 2100 South freeway at 5600 West.
Construction is expected to get under way next spring. In the meantime, Gateway will lease temporary manufacturing facilities near the site.
Initially, the company will hire about 200 people to work in the leased facilities and will ship its first personal computer before the end of this year.
When the new building is completed, Gateway expects to have 500 employees on the job, but that's just for openers. A company spokesman said the company expects employment to grow steadilyfor two or three years after the opening to a full staff of some 1,300.
Anyone interested in going to work at
Gateway may call the Utah Department of Workforce Services at 801-269-4763.
Prior to the press conference, Spears said in a prepared statement that Salt Lake City was chosen following an "extensive search" of the Western United States. He credited the city's ability to provide a quality labor pool, a "great quality of life for our employees" and a "recognized education system" for the company's decision.
"Also, the fit between Gateway 2000's values and Utah's values ultimately made the difference in our decision" to come to Salt Lake City, he said.
Ted Waitt, chairman and CEO, founded Gateway 2000 in September 1985 with partner Mike Hammond in a barn. Initially, they sold hardware and software to people who owned Texas Instruments personal computers.
They built the business solely by selling products to users through ads in computer-related publications. In 1987, Gateway began assembling its own brand of computers. It became a publicly traded company in 1993, offering stock on the Nasdaw market.
In 1996, Gateway shipped 1.9 million systems and had revenues of $5.04 billion and net income of $250 million. It employs more than 10,000 people worldwide in manufacturing facilities and offices in the U.S., Ireland and Malaysia.
A survey by IDC/ACNielsen released in May showed Gateway has the highest customer loyalty among home PC buyers of any manufacturer.
Gov. Mike Leavitt termed the deal a "great match" between the company and the state.
"Gateway 2000 is the kind of quality company we want to attract, with its emphasis on values, customer service and quality of life. It's a positive reflection on our state that values is the determining factor in Gateway's decision to expand into Utah," the governor said.
Mayor Deedee Corradini said the decision "represents a major investment by one of the country's most innovative Fortune 500 companies and marks the beginning of a relationship we hope will expand and benefit both Gateway 2000 and Salt Lake City for years to come."
Spears praised Leavitt, Corradini, David Winder, executive director of the Utah Department of Community and Economic Development, and "scores of others" for their help in the decision-making process.
"Their entrepreneurial spirit is appreciated and shared by Gateway 2000," Spears said.
Gateway 2000 was founded in 1985 and has become a major producer of personal computers and components. It employs some 10,000 people worldwide.