Anduril promises major job growth for state tax breaks

Axios

31-01-2025

Two weeks after Anduril Industries announced plans for a $1 billion, 5-million-square-foot production facility near Rickenbacker airport, more development details have emerged.
Why it matters: The autonomous weapons manufacturer will receive hundreds of millions of dollars in state incentives.
In return, the company promises to create thousands of local jobs over the next decade at the site dubbed "Arsenal-1."
Follow the money: Gov. Mike DeWine and the Ohio Department of Development announced Monday a 2.594 percent, 30-year Job Creation Tax Credit that will save Anduril an estimated $450 million.
That's the second-largest tax credit of its kind in Ohio history, just shy of the $475 million package awarded to Intel.
Pickaway County will also request $70 million from the state's All Ohio Future Fund to help with site prep.
The fine print: The incentives deal is still being finalized, but a Department of Development spokesperson confirmed that Anduril has committed to creating 4,008 full-time jobs by the end of 2035 that will generate over $530 million in new annual payroll.
Anduril pledges to invest $910 million toward the site by the end of 2035, and will be required to maintain operations there until 2058.
The company will employ a few hundred people to start and gradually ramp up production.
Between the lines: The deal was based on a "very conservative calculation" that Arsenal-1 will be a net positive, says J.P. Nauseef, president and CEO of JobsOhio, the state's private economic development corporation.
Nauseef tells Axios that 98% of JobsOhio incentive deals comply and meet commitments.
How it works: Funding and reimbursement are doled out at specific milestones "so we don't overexpose ourselves upfront," Nauseef says.
State and private partners are willing to "find ways to help them be successful," but will pursue legal action if those benchmarks aren't hit.
"We will not be taken advantage of."
State of play: Anduril spent a year examining 400 sites across the Lower 48 states before narrowing the venue to Ohio, Arizona and Texas.
What they found: In Columbus, the company gains a unique mix of amenities and geographical bonuses along with the $450 million welcome package.
Proximity to Rickenbacker offers runway space certified for military cargo and airlift, plus broader access to the region's defense, aerospace, national security and Air Force industry.
Columbus' centrally located supply chain has better ground, rail and air access than most areas of the country.
The Intel project paid dividends — Ohio leaders' "history of working with companies that they're bringing here for large projects" also contributed, SVP of strategy Zach Mears tells Axios.
What they're saying:"I think this is emblematic of what Ohio has done well to not just attract us, but companies like Intel and Joby Aviation," Mears told us. "They have a number of tools by which to understand our need and to effectively align incentives that incentivize us to deliver economic outcomes, jobs and a healthy business base here in Ohio."
Zoom in: Anduril's campus will mostly sit south of Rickenbacker and just east of a group of nearby warehouses and distribution centers, per a map shared with Axios.
What's next: Intel's semiconductor factory is taking many years to build, but Anduril expects a much quicker production timeline.
Mears says the company aims to start delivering its Fury autonomous air vehicle out of an existing building as early as July 2026.
Next will come Barracuda cruise missiles, Roadrunner autonomous twin turbojet vehicles and more.
Production is expected to increase from dozens in the first few years to eventually thousands over the next decade.
Anduril is motivated to move quickly because of tangible commitments.
The company already has "committed orders" and "clear production contracts that are driving delivery and timeliness," Mears tells us.
"The nature of what we need to deliver quickly to our customers is going to, perhaps, confound what the experience has been like for some of the more recent deals here."