A Canadian electronics company confirmed it will locate a manufacturing site in Fort Worth, with plans to invest hundreds of millions of dollars and create nearly 2,000 jobs.
A day after Fort Worth City Council approved a 10-year tax break for Celestica Inc. (NYSE, TSX: CLS), the company said May 13 it will expand its manufacturing footprint to Cowtown by building a new manufacturing campus in AllianceTexas, the 27,000-acre development by billionaire Ross Perot’s Hillwood.
Celestica and city officials estimate the campus is an $876 million investment that could create 1,715 jobs by the end of 2029, with an average annual salary of $75,000. Jobs would be across manufacturing operations, engineering, supply chain and quality assurance, according to the company announcement.
The campus, meant to support data center infrastructure, will occupy more than 1 million square feet of space, split between Alliance Center North 4 at 15301 N. Beach and Alliance Center North 6 at 15500 N. Beach St. The company already had a lease in place before the announcement but economic development officials said the size and scope of the project was still competitive, according to a presentation made April 28. Cherie Gordon, economic development coordinator for Fort Worth, called it a “mega project.”
“This investment reflects the incredible momentum of our business and the growing demand from customers for US-based capabilities supporting advanced technology solutions,” Yann Etienvre, chief operations officer of Celestica, said in statement. ”This new capacity is highly strategic and aligns our long-term growth plans with customer roadmaps and multi-year infrastructure investments already underway.”
The investment comes as the company plans for $1 billion in capital investment this year. Company executives previously told Fort Worth officials that the company was exploring options in Texas and around the world.
Celestica manufactures networking hardware including ethernet switches, storage systems and servers. They are heavily involved in producing infrastructure for artificial intelligence, including liquid cooling and power solutions.
Mike Berry, president of Hillwood, said in a statement that the company’s expansion underscores Fort Worth’s position as a hub for advanced manufacturing.
“We greatly appreciate Celestica’s selection of AllianceTexas for this very significant investment and look forward to working with them in the years ahead,” he said. “This investment reflects the strength of Fort Worth’s infrastructure platform, reliable power capacity, strong workforce pipeline and collaborative business environment, all of which continue to attract global companies building for the future.”
The deal is large for Fort Worth. By one standard, it’s 40% more than the Bell Textron plant announced at the end of 2024 — a $632 million aircraft parts manufacturing center currently under construction in Alliance. Fort Worth also approved grants and tax breaks to lure that deal.
If Celestica meets the job and investment requirements by the deadlines placed in the agreement, the city would provide an abatement of 80% on incremental real and business personal property taxes for 10 years, a tax break valued at $41.7 million. The city estimates a return on investment would take about seven years.
Celestica employs more than 27,000 people worldwide with more than 40 manufacturing and design centers worldwide.