One of Kokomo’s newest companies will soon receive a tax break from the city’s Common Council, a decision set to boost operations at the formerly empty factor at 1500 E. Murden St.
That location, which is now home to Saran Industries, was unanimously approved on first reading last Monday as an economic revitalization area, granting the company a three-year personal property tax abatement for an approximately $3 million investment.
A public hearing will be held at 6 p.m. Oct. 19 in City Hall to complete the economic revitalization area designation.
According to paperwork submitted to the council, the investment combines the manufacturing equipment, logistical distribution and information technology to be used in “surface preparation by shot blasting, resign impregnation of metal casting and other related manufacturing and information technology systems management purposes.”
With assistance from the abatement, Saran Industries, which announced on Sept. 8 its plans to move into the 250,000-square-foot facility, is expected to hire a minimum of 49 employees for an estimated total annual salary of $2,056,120.
The Indiana-based manufacturing firm, which expects to be fully functional by the end of the first quarter of 2016, could eventually bring as many as 60 jobs to Kokomo. Currently, Saran Industries provides surface finishing of metal products for automobile industry giant FCA US LLC and others.
“We are very excited for what the future holds for our company as well as growing with the city of Kokomo and our customers,” said Saran Industries Vice President Nick Saran, noting that a group of employees have already been hired.
Saran added the company’s long-term objective is to move business from other Saran Industries facilities to Kokomo because “it is logistically better for some of our customers in southern Michigan.”
“It is exciting to have Saran investments come to our community, provide the jobs investment and be able to bring that property back and have it occupied,” added council member Kevin Summers.