US company sets up base in Shannon

AN American company said Ireland’s low corporate tax rate “is a nice cherry on top” in its decision to establish a base here and that it hopes to make great savings from the rate.

US company sets up base in Shannon

Salt Lake City-based, ZAGG will establish a European Services Centre, creating 300 jobs by the end of 2014, in the Shannon Free Zone.

The mobile communications accessory manufacturer and distributor is preparing a €50 million investment in its new operation.

However, ZAGG’s chief financial officer, Brandon O’Brien, said Ireland’s 12.5% corporate tax rate is not the primary reason why the company is setting up in Shannon, though it is “a nice cherry on top”.

In a conference call with American analysts and investors, Mr O’Brien said “the real reason we have opened that facility is to better be able to serve the European markets”.

Last year, ZAGG almost doubled its revenues to $76 million, due in part to its protective covers for Apple’s iPad.

President and chief executive Robert Pedersen also cited Ireland’s low corporate tax-rate in setting up here.

Mr Pedersen said: “Another long-term benefit from our presence in Ireland is the low corporate tax rate enjoyed by US companies with operations in Ireland.

“This should have a real positive impact on our blended corporate tax rate into the future.”

A special event will take place in April, but there has been no official announcement yet on when ZAGG will set up in Shannon.

Documents have ben lodged with the Companies Office registering a company with a Shannon address, ZAGG International Distribution Ltd, with a share capital of €50 million.

In the conference call with investors to mark the company’s results for 2010, Mr Pedersen confirmed ZAGG will establish the distribution centre in Shannon to serve and support its European retail partners.

He said: “As of today, the fulfilment centre is live online and these operations are being overseen by a senior member of the ZAGG management team who has relocated to Ireland.

“The fulfilment centre is designed to scale to meet our needs as they grow and there is significant capacity for Zagg’s European business to grow seamlessly,” Mr Pedersen added.

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