KENDALLVILLE — The Kendallville City Council Tuesday night granted Hendrickson USA LLC two tax abatements for an $11.3 expansion project that is projected to create 41 new jobs over the next few years.
The council voted unanimously to approve resolutions granting the company a 10-year abatement for approximately $8 million in new equipment and a 10-year abatement for approximately $3.3 million in real property.
“I’d like to thank Boler/Hendrickson for their commitment to Kendallville and their continued growth,” said Councilman Jim Dazey.
Hendrickson’s two plants at 101 S. Progress Drive West and 220 S. Progress Drive West in the East Industrial Park lie within an economic revitalization area and are eligible for abatements. The company is a subsidiary of Itasca, Illinois-based the Boler Co.
Hendrickson is planning a 57,600-square-foot addition its facility at 220 S. Progress Drive West, and new equipment — including seven rubber injection molding presses, three assembly presses, five proof testers and a post bond line — for its plant at 101 S. Progress Drive West.
The company also plans to move equipment from its plant at 220 S. Progress Drive West to its plant at 101 S. Progress Drive West.
The expansion will increase business capacity and enable the company to make new production parts, according to its tax abatement application. The expansion and equipment installation are scheduled for completion at the end of December.
The company will realize a total tax savings of $769,457 on the two tax abatements over 10 years.
The company currently has a workforce of 179 employees, with an average salary and benefits package totaling about $51,000. The new jobs will have an average salaries and benefits package of about $41,000.
“The starting pay for the new jobs is about $16 an hour,” said Mayor Suzanne Handshoe.
Hendrickson makes suspension parts and systems for heavy trucks and buses.