Planned investment supports long-term growth, enhances the ability to serve customers, advances retention and attraction of talent, and demonstrates Company's commitment to the region
CLEVELAND, Feb. 6, 2020 /PRNewswire/ -- The Sherwin-Williams Company (NYSE: SHW) today announces it is finalizing plans to build a new global headquarters in downtown Cleveland and a new R&D center in the Cleveland suburb of Brecksville. The plans follow an extensive competitive site selection process and are contingent upon completion of standard due diligence, approvals of incentives and other matters at the state, county and city levels, and resolution of business and legal matters that accompany such major real estate investment projects.
"Our plans to continue investing in Cleveland and Northeast Ohio build on our 154-year legacy as one of the region's top employers and drivers of economic activity," says Sherwin-Williams Chairman and Chief Executive Officer John G. Morikis. "Driven by our continued need to serve our customers at the highest level and retain and attract top talent, we intend to create a next-generation workplace environment that ignites creativity, collaboration and industry-leading innovation. We currently operate out of a 90-year-old headquarters building that has served us well but is no longer conducive to meeting our future needs. The major planned investment in Cleveland and Northeast Ohio we are announcing today reflects our confidence in the continued strength of the region and its people and our public partners' ability to deliver on their commitments."
Preliminary plans call for Sherwin-Williams to invest a minimum of $600 million to build both facilities. The planned new global headquarters would be in downtown Cleveland just west of Public Square between Saint Clair Avenue and Superior Avenue and would be approximately 1,000,000-square-feet in size. The planned new R&D center would be in Brecksville, conveniently located off I-77 at Miller Road and Brecksville Road. The R&D center would serve as the corporate anchor for a new mixed-use development project and would be approximately 500,000-square-feet in size.
Combined, the two facilities would house more than 3,500 employees with room to accommodate significant future growth. Sherwin-Williams estimates it would add a minimum of 400 jobs at these facilities over time, an increase of 11 percent to the Company's current local workforce. Many of these jobs will include professional staff, engineers and chemists.
Sherwin-Williams is working with several state and local partners on this project, including the State of Ohio, JobsOhio, Cuyahoga County, Cleveland-Cuyahoga County Port Authority, the City of Cleveland and the City of Brecksville. Approvals of the Company's economic development packages and other matters remain pending and are expected over the next several months.
"The process to date has been an outstanding example of an effective public-private partnership, with particularly strong leadership from Ohio Governor Mike DeWine and Lieutenant Governor Jon Husted," adds Morikis. "JobsOhio President J.P. Nauseef, Ohio Development Services Agency Director Lydia Mihalik, Cuyahoga County Executive Armond Budish and his economic development team, Cuyahoga County Council President Dan Brady, City of Cleveland Mayor Frank Jackson, Cleveland City Council President Kevin Kelley, the City of Cleveland's economic development team, Brecksville Mayor Jerry Hruby and Brecksville City Council President Mike Harwood all have demonstrated ongoing support for our Company's ongoing success as we near the final stages of our plans. We also thank Team NEO, the Greater Cleveland Partnership (GCP), Downtown Cleveland Alliance (DCA) and Cleveland-Cuyahoga County Port Authority for their work and assistance."
The Company's public and private partners estimate significant positive economic impact in Cleveland and the State of Ohio driven by jobs, payroll, tax revenue, incremental jobs created by companies supplying goods on the projects, and the recirculation of wages throughout the regional economy. Sherwin-Williams current local footprint in Cuyahoga County including the City of Cleveland has generated more than $4 billion in employee payroll and $140 million in taxes over the past 10 years. Based on current site plans, the City of Cleveland estimates that when the new global headquarters is occupied, the Cleveland Metropolitan School District will receive an estimated $3 million in additional annual revenue from Sherwin-Williams.
"We are pleased to be a partner with Sherwin-Williams on this highly competitive project," says Ohio Governor Mike DeWine. "The state of Ohio, JobsOhio and our regional and local economic development partners have been focused on keeping one of Ohio's leading companies right here where they belong. Sherwin-Williams is an important part of the Cleveland and Northeast Ohio community, and the announcement today will provide good jobs and strong economic activity for Ohioans for years to come."
Sherwin-Williams has conducted a national search and explored multiple potential sites in other states as part of this project. The Company acknowledges their efforts and appreciates the thoroughness of the offers received. After a detailed analysis, the proposals from the State of Ohio, JobsOhio, Cuyahoga County, the City of Cleveland and the City of Brecksville have proven to be the most attractive in enhancing our ability to serve customers and retain and attract top talent over the long term.
"Sherwin-Williams has been a tremendous asset to our community, and we're pleased to see their planned commitment for continued growth," says County Executive Armond Budish. "This project again demonstrates that our region can compete on the national stage, and we intend to use this model as an example for other companies to locate in Northeast Ohio."
Over the past 10 years, the Sherwin-Williams Foundation, the Company and its employees have given more than $20 million to support local communities in Northeast Ohio. Sherwin-Williams employees also serve on more than 100 non-profit boards in Northeast Ohio. This philanthropic spirit contributed to the Company's plans to remain in Cleveland and Northeast Ohio.
"Sherwin-Williams has been a part of the fabric of our community for 154 years. A new global headquarters in Cleveland lays the foundation for the next chapter for both Sherwin-Williams and our city's history," says City of Cleveland Mayor Frank G. Jackson. "Cleveland has two of the largest business districts in Ohio, with world-class health care and arts and entertainment options, all connected to our thriving residential neighborhoods. The robust and vibrant quality of life here attracts the world's best and brightest talent, as does our proximity to 25 colleges and universities in Northeast Ohio. Sherwin-Williams recognizes these important strengths of Cleveland."
"We are excited about Sherwin-Williams plans, which would bring an infusion of jobs and additional tax revenue into our community," says Brecksville Mayor Jerry Hruby. "We believe the new R&D center in Brecksville would be a catalyst to attract increased office, residential, hospitality and retail investment."
The R&D center and global headquarters project continues to be a multi-year process. The transition to the new facilities is not expected to occur until 2023 at the earliest. No announcements have been made regarding construction partners, and no decisions have been made regarding the disposition of the Company's current R&D center and headquarters, located in Cleveland at Canal Road and W. Prospect Avenue, respectively.
For ongoing updates on the Company's new R&D center and new global headquarters, please visit buildingourfuture.com.
About Sherwin-Williams
Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution, and sale of paints, coatings and related products to professional, industrial, commercial, and retail customers. Sherwin-Williams manufactures products under well-known brands such as Sherwin-Williams®, Valspar®, HGTV HOME® by Sherwin-Williams, Dutch Boy®, Krylon®, Minwax®, Thompson's® Water Seal®, Cabot® and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams® branded products are sold exclusively through a chain of more than 5,000 company-operated stores and facilities, while the company's other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers, and industrial distributors. The Sherwin-Williams Performance Coatings Group supplies a broad range of highly-engineered solutions for the construction, industrial, packaging and transportation markets in more than 120 countries around the world. Sherwin-Williams shares are traded on the New York Stock Exchange (symbol: SHW). For more information, visit www.sherwin.com.
Investor Relations Contact
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Eric Swanson
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216-566-2766
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Media Contact
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This press release contains certain "forward-looking statements" about Sherwin-Williams. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "could," "plan," "goal," "potential," "seek," "intend" or "anticipate" or the negative thereof or comparable terminology. These forward-looking statements are based upon management's current expectations, estimates, assumptions and beliefs concerning future events and conditions. Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Sherwin-Williams that could cause actual results to differ materially from such statements and from Sherwin-Williams' historical results and experience. These risks, uncertainties and other factors include such things as: general business conditions; approvals of project incentives and other matters, completion of standard due diligence and resolution of business and legal matters relating to the project; Sherwin-Williams' ability to successfully integrate past and future acquisitions into its existing operations, as well as the performance of the businesses acquired; strengths of retail and manufacturing economies and the growth in the coatings industry; changes in Sherwin-Williams' relationships with customers and suppliers; changes in raw material availability and pricing; adverse weather conditions; and other risks, uncertainties and factors described from time to time in Sherwin-Williams' reports filed with the SEC. Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. Any forward-looking statement speaks only as of the date on which such statement is made, and Sherwin-Williams undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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SOURCE The Sherwin-Williams Company