ANDERSON — The October announcement that Caterpillar Inc. will build diesel-electric locomotives in Muncie is something Anderson area economic development officials are excited about.
“When we have a win like this particular one, we know that it will have a great regional effect,” said Rob Sparks, Corporation for Economic Development director. “I’m tickled. This will be a great use for that building. And reuse of an existing building can definitely be a good thing for the area.”
Anderson Economic Development Director Linda Dawson said although Anderson works hard to attract businesses to the city, the bid for the Caterpillar subsidiary Progress Rail Services plant isn’t one the city was involved in.
“We were never in the mix on this particular project due to the fact that we do not have a building suitable for them,” she said. “One of the requirements for the project was a sizable building. And that was something we didn’t have.”
The company plans to spend $50 million to reopen the 740,000-square-foot former ABB Power T&D Co., which closed in 1998 on Muncie’s south side. Caterpillar also plans to build a locomotive test track on the former transformer factory’s 75-acre campus, according to The Associated Press.
Even though it isn’t here, Progress Rail potentially will hire 650 over the next two years. Hopefully many of those jobs will go to Anderson residents, Dawson said.
“We were very excited about the announcement,” she said. “I’m very glad to see Muncie be successful in this project. It provides jobs for our residents, which is positive for the region.”
Sparks said the corporation works with two regional economic development groups — Indy Partnership and East Central Indiana Group — because the areas covered by the groups share a common work force as people commute from Madison County to other areas to work as well as workers commuting to Madison County.
The factory also is expected to bring in additional support businesses as well bringing even more jobs to the area. And diverse business is critical for economic growth, Sparks said, pointing out that locomotive production is very unique for the area.
Anderson, while dotted with abandoned buildings, doesn’t have anything that would support the height and weight requirements for the project.
The building Progress Rail is taking over features a central structure with a 99-foot-high ceiling and a manufacturing floor with built-in railroad tracks. It has mostly been used for storage in recent years.
The company expects to announce within a few weeks the plans for hiring employees ranging from engineers to production workers. The Indiana Economic Development Corp. said it offered Progress Rail up to $3.5 million in performance-based tax credits and up to $1 million in training grants, along with up to $1 million to the city for infrastructure improvements.
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