(Read more on the industrial market.)

SALT LAKE CITY-Procter & Gamble said Tuesday it will develop a paper products manufacturing plant on 750 acres about one hour north of here in Box Elder County. Cincinnati-based P&G will use the facility to increase manufacturing capacity for its Bounty and Charmin branded towel and tissue products.

The site is said to be located north of Bear River City and 14 miles west of Brigham City on a road locals call the Iowa String. The company expects to begin site work in early 2008 and begin operations at the facility in 2010. The total development cost is estimated at $300 million.

P&G used Colliers International’s location advisory and incentives practice for the site selection process. Colliers acted as the buyer so that P&G could maintain anonymity. Now that the project and P&G’s identity is public, Colliers will assign the purchase agreement on the chosen site to P&G.

The year-long assignment was led by Colliers VP Gregg Wassmansdorf. Local brokerage support was provided by Stefanie Tugaw of Coldwell Banker Tugaw Realtors. Wassmansdorf says the site selection process was one of his most comprehensive and sensitive to date.

“This project is not only large physically and financially, but encompassed the most challenging combination of site and infrastructure requirements of any project our practice has undertaken,” he says. “In addition to finding a favorable location with a readily available and skilled work force, the project required a water delivery, wastewater, rail, and utility infrastructure that allowed for significant future growth potential.”

The new facility will be the first new family care manufacturing facility in the US since 1973 and will include a new, state-of-the-art paper machine, converting lines and ample warehouse space. The development will include water and energy conservation technologies.

In support of the project, Utah’s Office of Economic Development Board earlier this month approved a tax-rebate incentive for P&G worth as much as $85 million. Sites in Oregon and Washington also were in the running for the P&G plant.

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