Donovan Estridge, Madison Courier Staff Writer

Gov. Mitch Daniels visited Madison on Thursday for the announcement that Midwest Tube Mills has formed a sister company, R&T Steel and Wire LLC, that will employ about 120 people.

The Indiana Economic Development Corp. and Jefferson County worked together on an incentive package for the company. The development corporation’s incentives included up to $38,500 in training grants and up to $310,000 in tax credits that are based on anticipated employment and the amount of capital investment.

R&T Steel and Wire will manufacture a variety of kennels and security panels in a 20,000-square-foot addition to Midwest Tube Mills, 2971 Michigan Road. Construction has started on the addition. The new company expects to begin hiring in August.

Daniels’ visit to Madison kicked off a day-long tour of southern Indiana for economic-development announcements.

He praised Madison for creating jobs and sparking the economy.

“Madison, one of the jewels of the state, is an economic leader,” Daniels said. “There is no town doing it better than you, and I salute you for it.”

“I am devoted to small town growth,” Daniels said. “I am thrilled about the news.”

Rick Russell, owner and chief executive officer of Midwest Tube Mills, fought back tears when he announced the expansion.

Russell, who graduated from Southwestern High School, started Midwest Tube Mills with four employees in Edinburgh in 1993. He moved the business to Madison in November 1999 and currently has 60 employees.

“Rick (Russell) is leading in the right direction,” Daniels said. “I will take his story across the state.”

“We did this for the community,” Russell said. He is the majority owner of R&T, with his attorney and friend Chris Trower of Atlanta, Ga., owning a small part, said Marybeth Boone of Midwest Tube, who does marketing and is helping with project management for the new sister company. A Michigan company intended to buy Midwest Tube last year, but the sale fell through so Russell remains the owner.

Security panels are temporary fencing that is placed around road, highway and building construction sites, disaster areas and buildings that need security, Boone said. The kennels are intended to meet whatever dogs and their owners need, Boone said. “It’s a kennel that’s designed for the dogs,” she said, and comes in 10 models varying in shape and size. Russell got the idea for the kennels because of the large number of baby boomers who own dogs, she said.

The products are sold to customers who put their own label on them and sell them to consumers at large, national outlets, Boone said.

Midwest Tube will be the biggest customer for R&T as the products go from manufacture to marketing, she said.

The added income of 120 jobs could create a stronger economy in the city, local leaders said.

Galen Bremmer, executive vice president of the Madison Area Chamber of Commerce, said that a general rule of economics is to multiply every dollar earned by seven to gauge the local economic impact from employees spending money on groceries, retail goods and entertainment in the city.

“This could enlarge the community,” Bremmer said. “Madison is on a roll.”

Using the multiplier, the 120 jobs “could be huge” in the local economy, Mayor Al Huntington said.

Huntington said Madison is economically unique because of the balance between tourism and industry.

On the industrial side of Madison, several factories have already expanded to create new jobs.

“Arvin Sango has expanded numerous times,” Huntington said.

Last month, Madison Precision received tax-abatement for its possible expansion in Madison.

Huntington attributes the economic boom to the community.

“When companies come here, they see a good place to have a community,” he said.

Madison’s attributes include a strong work ethic and the city’s business-friendly atmosphere, he said.