By Justin Sayers – Senior Staff Writer, Austin Business Journal
Jul 26, 2024
Updated Jul 26, 2024 8:48am CDT
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A key South Korean supplier to Samsung Electronics Co. Ltd. has moved a step closer to building a $575 million phosphoric acid plant on 85 acres it purchased at the RCR Taylor Logistics Park last year.
Soulbrain Holdings Co. Ltd. won approval on July 25 for incentives from the Taylor City Council. The company previously received approval for incentives by the Taylor Economic Development Corp.
Soulbrain committed to a minimum capital investment of $175 million — but officials noted it potentially will undertake a second, $400 million construction phase, according to a July 25 announcement. Soulbrain also plans to create 50 jobs, make an annual civic donation of $25,000, create an internship for local high school students and join the Taylor Chamber of Commerce.
The first phase of the project is slated to start in January and be completed by January 2029, with the second phase scheduled to start by January 2029 and be completed by January 2033, officials said.
“We are excited to expand our business in Taylor," Soulbrain vice president of technology and general counsel Jon Park said in a statement. "The City and EDC have been great partners in helping us through the process of this expansion."
The city's incentives agreement — codenamed "Project Star" in economic development discussions — with Soulbrain TX LLC provides a 10-year, 25% property tax abatement for each phase of construction, according to the announcement. The company also entered into a Chapter 380 agreement with the city and TEDC that provides a 25% rebate on the local use tax collected on the materials used for construction. Estimates of those rebates weren't disclosed.
“This investment will bolster our local economy, create opportunities for our residents, and add to the growing portfolio of high-tech industries in the city of Taylor," Taylor Mayor Dwayne Ariola said in a statement. "We look forward to seeing this project's positive impact on our city.”
The Austin Business Journal first reported in April that Soulbrain purchased land in the park. The chemicals company is a key Samsung supplier, and it had been looking for space to serve Samsung's new Taylor outpost after merging last year with DNF Co., another Samsung supplier. As of 2023, Samsung was the second-biggest stakeholder in DNF.
The TEDC first approved an incentives agreement in January, though specific details about the size and scope of the project weren't available at the time.
“Adding Soulbrain to our community adds yet another diverse, international company that will expand our tax base and create new jobs for our citizens," Betty Day, chair of the TEDC's board of directors, said in a statement. "Ever since Taylor landed Samsung, we have been working hard to recruit their top suppliers."
The announcement marks the continued impact of the Samsung plant on Taylor, which is located about 35 miles northeast of downtown Austin and has a population of about 17,300 people. Samsung is building a massive plant in Taylor as part of a planned $45 billion investment there and in North Austin. Linde Inc., a subsidiary of United Kingdom-based industrial gas company Linde PLC, will also be based at the Samsung site.
Soulbrain is one of several companies that plan to set up shop in the 750-acre RCR Logistics Park being developed by Hempstead-based McAlister Assets LLC and RCR Rail Park Development Co. Two other logistics companies that operate in both South Korea and the United States — HTNS America Inc. and ENC Inc. — are tied to the purchase of more than 24 acres in the park. Texas Materials Inc. is building materials plants. Houston-based Partners Real Estate has completed a 366,000-square-foot building and is gearing up to start a second building that has been leased by Tesla Inc.
Other Samsung suppliers are known to be expanding in the metro, which includes: Hanyang Eng USA Inc. in Cedar Park; Wonik Materials North America LLC in Manor; iMarket America Inc. in both Taylor and Round Rock; MSS International and KoMiCo Technology Inc. in Round Rock; Fine Semitech Corp. in Hutto; EcoMicron Inc. in Cedar Park; LS Electric Co. Ltd. in Bastrop; and MGC Pure Chemicals America Inc. in Killeen.
Ben White
CEO/President
Taylor Economic Development Corporation
112 West 2nd Street, Suite 203
Taylor, Texas 76574
512-352-4321