GARY | Edsal Manufacturing of Chicago will create up to 300 jobs in Gary in coming months as it expands its production of steel shelving and similar products.
The company will locate in the Chicago Steel building at 700 Chase St.
Mitch Liss, the company's executive vice president and co-owner, said Gary offered a superior logistical situation and pool of potential employees, but also, "nobody took this opportunity more seriously than the mayor's team here did."
Mayor Karen Freeman-Wilson called Edsal "a business who recognizes Gary's assets and wants to take advantage of those assets."
Liss said the company intends to begin basic operations in Gary in 30 to 45 days with 40 or 50 employees. Within 90 days, it intends to have 200 employees, on its way to 300.
"It's something we're committed to for the long term," Liss said of Edsal's operation in Gary.
He said most jobs will be minimum-wage, but said the company offers training and opportunities for advancement.
The city will host a job fair for Edsal from 10 a.m. to 4 p.m. May 8 at the Hudson and Campbell Center in downtown Gary.
"There are individuals in Gary ready to go to work as as soon as Edsal is prepared to put them to work," Freeman-Wilson said.
Gary Economic Development Corp. Executive Director Bo Kemp said Edsal has agreed to focus on the "hard-to-employ population."
He included newcomers to the workforce, the long-term unemployed, veterans and ex-offenders.
Kemp noted the jobs offer full-time benefits.
He said the administration will ask the City Council to approve a tax abatement for the company.
The 10-year abatement would apply to personal — essentially equipment — and real property. It would provide property tax relief on a declining scale for a decade.
Edsal's opening of a plant in Gary comes while a longtime jobs rivalry between Indiana and Illinois appears to be intensifying. Earlier this month, Illinois Gov. Bruce Rauner said he wanted to "rip the economic guts from Indiana."
Liss noted Thursday that Edsal was expanding into Gary.
"We're not taking anything away from anywhere else," he said.
The firm employs about 1,500 workers in plants around the country. Its Gary plant will mainly be involved in basic activities including final assembly, packaging, warehousing and shipping until the full workforce is hired and trained.
Liss said Edsal's expansion is largely due to favorable decisions by the U.S. Department of Commerce and the International Trade Commission regarding "dumping" of steel shelving by Chinese manufacturers.
"We've already begun to see favorable benefits for Edsal," Liss said of that ruling made last month.
Chicago-based Edsal makes commercial-grade shelving and storage systems. It is a family owned company founded in 1957 as a steel sewing table manufacturer.
The Chase Street building is essentially ready for production, Liss said. The company has been moving equipment in already.
Liss noted that one advantage is railroad service directly to the facility.
"That's going to save us a tremendous amount of money," he said.
Liss also said the Gary/Chicago International Airport will help with transport of smaller components.
Liss said 80 percent of its business is shelving, and its products are available at major home improvement stores including Home Depot, Lowe's and Menards.
The Chicago Steel building is known as the Chase Street Industrial Center. Edsal will use about 300,000 square feet of the building, which originally housed the Budd Co.
Brian Bobb, a member of the family that owns the center, said Edsal will complement Chicago Steel, which does tension leveling and slitting of cold-rolled steel.
"The two businesses can work together," he said.