DENTON, Texas — This article was originally published by our content partners at the Dallas Business Journal. You can read the original article here.
A global engine parts manufacturer is planning to put its U.S. headquarters in Denton.
Enginetech North America has applied for incentives from the city. The headquarters facility could create 133 jobs within five years, according to a Denton Economic Development Partnership board presentation from earlier this month.
Denton City Council is expected to vote on incentives for the new headquarters on Dec. 3.
Enginetech Systems is based in India and has more than 500 employees. The biggest customer of its U.S. subsidiary, which appears to be registered as Enginetech North America Corp., is Washington-based commercial truck designer Paccar Inc. (Nasdaq: PCAR), for which it became a vendor in 2018. Paccar owns Denton-based truck maker Peterbilt.
Other Enginetech customers include Irving-based Caterpillar, Chevrolet and Volvo, according to the city presentation.
Enginetech Systems makes parts such as cyclinder head covers and air filters used in truck engines. It did not immediately respond to a request for comment. The company started looking for a location for its U.S. headquarters in 2023, according to the city presentation.
Enginetech Systems is not connected with Enginetech Inc., based in Carrolton.
Enginetech Systems has added three new product contracts in the past month, according to the presentation, and hopes to start overall production in Denton by Jan. 5, 2025 at 2025 N. Masch Branch Road, within the M380 Business Park.
Enginetech estimates spending $5.9 million on capital investments: $200,000 on building improvements and $5.7 million on equipment. In exchange, the Denton Economic Development Partnership board unanimously recommended giving Enginetech $339,545 between a headquarters grant, five year 50% tax break on equipment and job grants based on salaries and hiring Denton residents.
According to the Denton Economic Development Partnership's analysis, the deal cost the City of Denton $3.7 million and take 6.9 years to recoup its investment. After 10 years, the city would generate $115,484 in revenue from the deal. Since the City of Denton supplies its own electricity, Sotelo said any new major electricity user would also generate revenue for the city.
It would be a significant injection of jobs and investment for Denton, which is located north of Fort Worth. Denton has seen significant population growth in recent years and commercial development is following suit.
Brittany Sotelo, Denton's economic development director, said during the Nov. 13 meeting an agreement with Eginetech would come with clawback measures, where the company would have to pay back certain amounts if parts of the agreement are not met.
Christina Davis, business development administrator at the Denton Economic Development Partnership, said the average annual base salary for Enginetech employees is $62,522, or about $30.06 an hour.
