IPG Photonics' $215M expansion plans reduced 68%
Photo | Matt Pilon
The Oxford headquarters of IPG Photonics.
The planned expansion of IPG Photonics’ Oxford headquarters was reduced before voters approved a 15-year tax agreement at a town meeting Wednesday.
The laser manufacturer initially planned to invest $215 million to add nearly 1 million square feet, including a 460,000-square-foot parking garage and 500,000-square-foot manufacturing and office building.
However, the company recently informed the town its manufacturing space will be 170,000 square feet, slashing its investment to about $68 million.
That includes $45.4 million for construction and $22.5 million for personal property, Acting Town Manager Dennis Power said Thursday.
Also reduced is the number of jobs the company said it will create as part of the project, from 500 to 400.
Power said IPG Photonics didn’t say why they were reducing the project’s size, but he pointed to the company’s recent purchase of the Technetics facility as a possible reason.
Technetics, based in South Carolina, said it is closing its 75,000-square-foot Oxford facility next to IPG at the end of August.
In an email, Vice President of Investor Relations James Hiller confirmed that the company scaled back its expansion plans after the acquisition of the Technetics building.
IPG in late June purchased that facility for $26 million.
Despite the downsize, Power said he looks forward to the global company’s expanded presence in town.
“It’s nice to have a company’s worldwide headquarters here in Oxford,” he said, adding that the expansion should take some of the tax burden away from residents. “That’s a positive thing for Oxford and for state of Massachusetts.”
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