GKN Sinter Metals is growing again.
During its meeting Monday, April 8, the Salem City Council approved a 10-year tax abatement for the company. "Business is booming, we are growing," Jai Perumal, plant manager, told council members.
Perumal said the company, which makes parts for the auto industry, is planning a $6 to $7 million investment, purchasing three new presses.
Drew Wright, attorney for the city, explained a tax abatement is basically a deduction. The first year, the company receiving an abatement is given a 100 percent deduction, the amount of the deduction diminishes over the life of the abatement.
Wright said the city can put stipulations on tax abatements, but historically has not done that.
He explained the loss in property tax revenue for the city is offset with the increase in incometaxes from employees. GKN anticipates hiring nine new employees as a result of the investment.
| The council also approved two compliance statements in connection with tax abatements granted GKN in 2004 and 2010. Companies receiving abatements are required to file an annual statement, showing they are complying with the terms of the abatement. Sabrina Burdine, with Washington County Economic Growth Partnership, said the company is in compliance. Burdine recommended acceptance of a number of other compliance statements as well, including Kimball Furniture Group, John Jones Auto Group, Future Development, Husqvarna, Kroger, Salem True Value, John B. Shine and BC KOM Enterprises. http://www.salemleader.com/main.asp?Search=1&ArticleID=6600&SectionID=2&SubSectionID=20&S=1 |
