Midway industrial tenant Hugo Boss on Monday announced it is planning a $4.5 million internal expansion that will increase its output capacity.
The group received unanimous authorization for a five-year gradual tax abatement from the Liberty County Development Authority, which owns the Midway Industrial Park where the German clothing company’s distribution center is located.
Plant manager Mike Heagy said the expansion will include installation of additional mezzanine, racking and a conveyor that will increase product capacity.
LCDA CEO Ron Tolley encouraged the board to accept the request even though it will not produce a great increase in jobs.
The abatement will follow similar deals in which taxes on the new personal property will be abated at 100 percent the first year; 80 percent the next year; 60 percent the third year; 40 percent the fourth year and 20 percent the final year. After the abatement period, the property will be fully taxed.
The luxury-clothing company located in Liberty County in 2001 and first built a 165,000-square-foot facility and reached 125 employees, according to Tolley. In 2008, the company expanded the building to 330,000 square feet and boosted its employment to about 200.
“They’ve been one of those wonderful corporations to work with where they do what they say they’re going to do,” Tolley said.