Elkhart firm's expansion could result in 25 new jobs

An Elkhart firm plans to expand and add 25 new jobs in the next three years.

Those intentions came to light Monday, Sept. 8, when representatives of Sapa Extruder Inc., requested a three-year tax abatement from the Elkhart City Council.

Sapa Extruder plans to invest $6 million in new construction and equipment as part of expansion that will include a new extrusion press and shipping area at its facility on Reedy Drive, on the city’s north side.

The company manufactures aluminum extrusions that are used for numerous industries, including automotive and mass transit.

The average hourly wage for the new positions will be $15.85, according to paperwork provided by the city.

If approved, the tax abatement would allow the company to save $93,999 in personal property taxes and $152,235 in real property taxes over the three years.

Also during that time period, the company plans to pay $77,265 in new taxes. The new jobs are expected to generate an additional $12,363 in local income taxes annually, according to paperwork provided to the city council.

The council approved the first step in the request with a unanimous vote and could complete the request within a few weeks.

The council also resolved concerns over an annual tax abatement compliance report for Harman Professional, which was granted a seven-year abatement last year.

The company failed to submit annual paperwork earlier this year that outlines the progress tied to the tax abatement.

A spokesman for a tax consulting firm hired by Harman said the oversight has been addressed.

Several council members said city officials should have reached out to the company when it was realized the paperwork had not been submitted.

The council waived any formal concern over missing the deadline and then approved a finding of compliance for the company.