Volkswagen picks Canada after Oklahoma offered $700M incentive package for plant in Pryor

Oklahoma officials had put together a nearly $700 million incentive package hoping to draw the facility to the MidAmerica Industrial Park in Pryor.

State lawmakers said previously that they believed the Volkswagen deal could have resulted in 7,000 new jobs and more than $5 billion in capital investment from the company. Average pay for the jobs was expected to be $75,000 annually.

Earlier in the legislative session, the state’s Large-Scale Economic Activity and Development Act was updated to require a company to make a minimum capital investment of $3.6 billion and create 3,500 new jobs over four years to qualify for a state rebate that would be funded through $698 million the Legislature set aside last year in a previous effort to lure an electric vehicle battery plant to Pryor.

“Earlier today, Volkswagen announced that it has selected St. Thomas, Ontario, Canada, as the location to build the company’s first overseas battery cell plant,” Canadian leaders said in a statement Monday. “Today’s move is a major vote of confidence in Canada and Ontario, and in our shared work to position the country and the province as global leader in the electric vehicle supply chain.

“This historic investment is a testament to Canada’s strong and growing battery ecosystem and Ontario’s competitive business environment. With a highly skilled workforce, clean energy, an abundance of critical minerals, access to markets, and a flourishing automotive and battery sector, we are an attractive investment destination with everything companies need to grow. In addition, Canada and Ontario offer stability and predictability to their business partners.”

Gov. Kevin Stitt’s office, when asked about the automaker’s decision, replied: “There’s no doubt that today’s announcement was disappointing…

“Oklahoma has never been in a position to compete with an entire country for a major project, but that’s exactly what we did, and it’s a testament to the hard work of state leaders in the Legislature and the Commerce Department who are making Oklahoma the most business-friendly state in the nation.

“Now we are right back to work pursuing additional opportunities in the pipeline and will continue our critical efforts to help companies who are already in Oklahoma expand and grow. I remain committed and optimistic that if we continue to work together, Oklahoma will land one of these historic opportunities.”

Last year, Oklahoma lost out on a deal to lure a $4 billion Panasonic electric battery facility to the MidAmerica Industrial Park.

Panasonic opted, instead, for De Soto, Kansas, to supply batteries for Tesla. It was expected to generate 4,000 direct jobs in that state.

MidAmerica CEO David Stewart said a continuity of leadership and strategic investments have laid the groundwork for the industrial park to compete for national and international projects.

“As the eighth largest industrial park in the world, MidAmerica was among more than 100 sites considered by the site selection team and ultimately chosen as the number one site to represent the United States to compete for this project,” Stewart said in a prepared statement. “We continue to prove our ability to compete at the highest level for a mega project that will generate high-paying jobs for Oklahomans.”

Tulsa Regional Chamber President and CEO Mike Neal commended the teams at MidAmerica, the Grand River Dam Authority and Tulsa Ports for their commitment through the site selection process.

“Oklahomans should be proud of our growing competitive advantage, which includes not only a collaborative spirit of leadership, but also a strong workforce, plentiful natural resources, and low cost of living,” Neal said in a prepared statement. “Across multiple industries, Tulsa and northeast Oklahoma are receiving historic levels of global interest as a destination for future projects.

Senate President Pro Tem Greg Treat, R-Oklahoma City, announced the formation of a select committee on economic development as a result of the Volkswagen deal’s falling through.

He said the committee, which he plans to lead, will examine the state’s economic development strategies and compare them to what states such as Kansas and Texas have done to land major business-expansion projects.

In 2020, Tesla choose Austin over Tulsa as the home of its CyberTruck Gigafactory.

Treat said he’s frustrated that Oklahoma keeps coming in second place for major economic development deals.

“We’ve just got to figure out how to become more competitive,” he said.

World Capitol Bureau reporter Carmen Forman contributed to this story.