State tax credits aid Great Northern

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By MARK GUNDERMAN
mark.gunderman@lee.net
Tuesday, October 7, 2008 11:05 AM CDT

It’s hard for industry outsiders to appreciate the intricacies of printing technology, but this sort of sums it up: Great Northern Corporation will have the first piece of digital printing equipment of its kind in North America.

The equipment is expected to create 25 new jobs at the Chippewa Falls plant still known by many locals as the former Kell Container.

“It’s something that could really revolutionize our industry over time,” said Mike Schliesmann, senior vice president for Great Northern.

The digital high quality graphics printing process was impressive enough to bring Wisconsin Gov. Jim Doyle and new Secretary of Commerce Dick Leinenkugel to the Chippewa Falls plant Monday for a formal announcement of the awarding of $250,000 in technology zone tax credits for purchase of the new equipment.

The announcement also involved a bit of a political behind-the-scenes story starring a couple of local legislators.

Technology zone tax credits were designed to encourage technological innovation in certain regions of the state with strong technology business sectors. It mirrors other programs focusing on other segments of the economy, like the agriculture sector zones.

Great Northern’s application for the credits was a strong one because of the new technology employed by the company that makes point-of-purchase displays for retailers, as well as a wide assortment of packing container products. Example: That display featuring an action movie star in cardboard, containing DVD copies of the hot movie may have been made here in Chippewa Falls.

Schliesmann explained that the new press will be 100 times faster than other presses, bringing products to production without the need for the traditional burning of plates commonly used in the printing industry.

“Kell has long been a place looked on as a prototype, a high technology place,” Schliesmann said.

The company is investing $3.75 million into the technology, aided by the tax credits.

In making the announcement, Doyle took time to acknowledge the tough times falling on the nation’s economy.

“We are in very, very difficult times,” said Doyle. “I hope we all understand in the end our economy in Wisconsin and our economy in the United States depends on us making things.

“We have to get back to basics in Wisconsin; we have to build our economy from the ground up,” Doyle said.

Also making remarks about the technology zone grant award was Dick Leinenkugel, a Chippewa Falls native recently named secretary of the Department of Commerce. It was Leinenkugel’s first road with the governor in his new position.

Doyle also introduced State Sen. Pat Kreitlow (D-Chippewa Falls) and State Rep. Jeff Wood (I-Bloomer), who were, in their own way, instrumental in securing the tax credits for Great Northern.

The tax credit zone program was slated to end, with the Legislature poised to combine all zones and programs statewide, with the support of economic development professionals from all over the state. Economic development leaders from the Chippewa Valley were virtually alone in opposing the move and calling for the renewal of the technology zone tax credit program, which had been extremely successful in Chippewa County.

Wood, then a Republican, in the Assembly and Kreitlow in the Senate worked together in the last budget bill to extend the program, even as Doyle supported the changes the Legislature was poised to make.

Their work allowed for the continuation of the program, resulting in the $250,000 Great Northern award.

“In a time when we are seeing the national economy worsen, it is refreshing to see a local company use the Wisconsin Technology Zone program to strengthen our community,” said Wood in a statement released after Monday’s presentation.

“Sen. Kreitlow and I are extremely excited to see good-paying jobs go to hard-working people in the Chippewa Valley area.”

“The expansion of these tax credits was the result of a bi-partisan effort in a difficult political atmosphere, and we look forward to more local companies continuing their growth under this proven program,” said Kreitlow.