INDIANAPOLIS | A northern Indiana brick maker has begun construction of a Gary plant that will create at least 20 jobs.

IB&B won approval Thursday for a $7.9 million loan the company will use to build a new production site near Interstate 65 and U.S. 12-20 on land formerly owned by Republic Steel. The project broke ground this week, said Jean Critser, a member of the ownership group of IB&B, a limited liability corporation.

IB&B operates Illiana Block and Brick in Michigan City as well as South Bend Block. The plants produce precast concrete products used in landscaping, retaining walls and building construction, particularly basement walls and school buildings.

"With our two facilities now, we have not been able to meet the demand of the current customers that we have," Critser said. "We are trying to expand and create some jobs in the area."

IB&B received an overall loan of nearly $8.7 million, but the firm plans to use about $790,000 to refinance existing debt.

The loan was approved Thursday by the Indiana Finance Authority. Private banks will provide the cash, but state involvement allows private borrowers to secure a lower interest rate.

"This is the kind of thing the program was set up to facilitate," said Chuck Schalliol, IFA chairman and state budget director. "Go forward and create those jobs, because we need them."

Critser said the Gary plant will help the company supply Northwest Indiana, Michigan and the south suburbs of Chicago. The facility, likely to be called Gary Block, will create 20 to 25 jobs, she said.