Alcon’s potential manufacturing moves have Fort Worth eyeing tax breaks

Fort Worth is competing against sites in the U.S. and internationally as eye care giant Alcon considers relocating two manufacturing lines from Europe to the city. 

Should the Geneva, Switzerland-based company choose to move its manufacturing lines to Alcon’s existing Fort Worth campus at 6201 S. Freeway, the change of scenery would result in an estimated $186 million investment and create 241 full-time jobs paying an average of $75,000. 

Kelly Baggett, innovation coordinator in the city’s economic development department, briefed the council on a proposed incentive proposal for the project during a Sept. 23 work session. 

Changes in market conditions and a search for operational efficiencies have led the company with U.S. headquarters in Fort Worth to reevaluate the location of some business units, Baggett said. As a result, company leaders are conducting a site search to relocate its viscoelastic surgical devices product line from Belgium and its single-dose pharmaceutical product line from France. 

If both lines move to Fort Worth, it would be a significant expansion, Baggett told the council, and mean a 15% increase in headcount for the company’s local operations. Alcon, which makes contacts and eye care devices, traces its history in Fort Worth back to 1945. 

The Fort Worth Economic Development Partnership proposes a seven-year agreement worth up to $6 million. 

If the company moves both manufacturing lines to Fort Worth, the city would give the company 70% of the grant rate or about $4.2 million. The company would be required to make a $186 million-minimum investment, which includes real estate and equipment, by the end of 2028. Alcon would also have to meet a minimum average annual salary of $75,000 and maintain 241 jobs.

City estimates show the return on investment in one year would include $3.5 million in new tax revenue for the city. 

Baggett said if only one of the lines relocates to the area, the city’s proposed incentives would be reduced depending on which manufacturing line comes to the city. 

The shift of the manufacturing lines to the United States could be a result of tariffs.

Alcon officials forecasted a full-year gross tariff impact of about $100 million, up from the $80 million it had previously estimated, according to the company’s second-quarter results earnings call. In a conference call, company leaders said they expect to offset those costs through operational changes and foreign exchange movements. 

The Fort Worth City Council is expected to vote on the economic incentive package at its Sept. 30 meeting. 

Alcon was founded in Fort Worth and merged with Swiss pharmaceutical company Novartis in 2011. It then became its own publicly traded company in 2019, headquartered in Geneva. But it continues to have major operations in Fort Worth and is one of the city’s largest employers with about 4,500 workers. 

In August, Fort Worth nominated Alcon’s campus for the Texas Enterprise Zone Program, which would allow for a state sales and use refund for up to $1.2 million over five years to help with upgrades. Alcon is planning $40 million in facility improvements at its 6201 S. Freeway building, including mechanical, electrical and plumbing upgrades. 

Bob Francis is business editor for the Fort Worth Report. Contact him at bob.francis@fortworthreport.org.
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