Tuesday, July 3, 2012

Elkhart Approves Abatement Request for Kiel North America for Proposed Manufacturing Facility

From the Elkhart Truth:

A European maker of mass transit seating systems is on the verge of getting a foothold in North America by establishing a manufacturing operation in Elkhart.

Kiel North America LLC, based in Germany, is considered one of the top two manufacturers of mass transit seats in much of Europe and has been eyeing Elkhart for several years, said Mark Walter, director of finance for the company.

On Monday, the Elkhart City Council took the first step toward approving a request by Kiel for a tax abatement for a manufacturing facility at 4519 Wyland Drive in Elkhart.

Kiel, pronounced keel, has already lined up incentives from the state of Indiana and approval of the abatement by the city council would be the final hurdle in the company’s decision to establish its North American headquarters in Elkhart, Walter said.

Kiel tentatively plans to invest $3.8 million in manufacturing equipment. The company plans to hire 62 employees over the next three years, Walter said.

Installation of new equipment could begin within a few months. Manufacturing will be phased in and could begin soon afterward, Walter said.
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Kiel is one of two abatement requests the city council was working through on Monday.

The council approved the first step of the process for Kiel by establishing an economic revitalization area and also approved the final step in granting tax abatement to KIK Custom Products, which is in the midst of an expansion that will result in 68 new jobs.

Votes supporting tax abatement requests for both companies were unanimous.

A final approval for Kiel could happen within weeks and appears to be all but assured.

Kiel was also granted up to $300,000 in conditional tax credits and up to $150,000 in training grants, according to a news release issued by the Indiana Economic Development Corporation.

Mayor Dick Moore said the city is excited about Kiel’s investment in the community.

“Companies around the globe are recognizing that Elkhart has a unique combination of location, workforce and cost of doing business that makes our community second to none,” Moore said. “We couldn’t be more pleased.”

http://www.etruth.com/article/20120702/NEWS01/707029949/0/FRONTPAGE