Panasonic passes on Oklahoma plant for second time

PRYOR, Okla. (KFOR) - Panasonic has once again decided to take its business elsewhere. This is the second time the multinational electronics company has decided against an Oklahoma factory location in as many years, despite the millions of dollars in incentives the Sooner State is offering.

Oklahoma has been working for years to lure big businesses into the Sooner State, particularly electric vehicle ventures.

“We have the opportunity to land one of the largest factories in the entire country, just a humongous, humongous factory with billions of dollars in investment, thousands and thousands of jobs,” said Governor Kevin Stitt in an April 2022 pitch for lawmakers to pass an incentive package.

However, that opportunity fell flat by June 2022, when Panasonic announced its latest electric vehicle plant would be located in Kansas.

By March 2023, Gov. Kevin Stitt had signed a $698 million incentive package into law to entice a major company to set up shop at the MidAmerica Industrial Park in Pryor, Oklahoma.

Many in the state were hoping that major company would be the Volkswagen Group.

But just a few weeks later, VW had announced it would be going to Ontario, Canada.

So, Oklahoma set its sights on Panasonic once again.

Oklahoma lawmakers formed a bipartisan committee to explore ways to expand the Sooner State's economic investments.

The Legislature also appropriated $145 million for the Oklahoma Department of Commerce in 2023 to make improvements and upgrades at the Pryor facility at Panasonic's request.

Despite this, Panasonic says the deal hasn't panned out.

“In April 2023, we entered into an agreement with the state of Oklahoma to explore building a factory in the state, with the understanding that we would make a decision about whether or not to move forward at the end of that exploratory process,” Panasonic spokesperson Alison Klooster said in an email to Oklahoma Voice. “After careful deliberations, we have made the decision not to move forward with developing the site.”

Now, Oklahoma leaders are back to the drawing board with hope for future endeavors.

“The Legislature provided that which was requested by the executive branch to win the commitment of [Panasonic],” House Speaker Charles McCall, R-Atoka, said in a statement to Oklahoma Voice. “Oklahoma remains open for business, and we are excited about the economic development advancement we have recently seen in our state, including the 1,500-job manufacturing facility under construction by Enel.”

It is unclear why Panasonic is pulling out of Pryor. Klooster told Oklahoma Voice that decisions about where to build new facilities are complex and based on a wide range of factors.