New Carlisle steel companies propose expansion, new jobs

by Troy Kehoe (tkehoe@wsbt.com)

Tools

I/N Tek Expansion

I/N Tek I/N Kote wants a tax abatement to finance an expansion at the New Carlisle plant. The move would create 100 new jobs. (WSBT photo)

By Jim Pinkerton

NEW CARLISLE — More than 100 new jobs could be coming to St. Joseph County. I/N Tek I/N Kote is considering expanding its steel production plants in New Carlisle, but it's not a done deal yet.

I/N Tek I/N Kote's parent companies, Japanese based Arcelor Mittal N.V. and Nippon Steel Corporation, want New Carlisle to give them a tax break first. On Tuesday night, company executives asked New Carlisle's Town Council for tax abatement package that would decline over 10 years.

That means the company would pay about 10% more of their property taxes with each passing year over the length of the abatement, until they were paying 100% of their taxes by year 11.

It's the same deal New Carlisle extended to the companies when the plant was built in 1989.

I/N Tek opened in April of 1990 as a continuous cold rolling mill that creates thin strips and sheets of metal. Those strips are then turned into items like mail boxes, air conditioners and automobile parts.

I/N Kote began production about a year and a half later, occupying space in the same plant. I/N Kote uses electro-galvanizing that coats the metal to prevent rusting and corrosion. A "hot dip" galvanizing line was added three months later.

Most of the parts from I/N Kote are supplied to auto manufacturing plants across the United States.

It wasn't long after both facilities began operations that company executives were talking about expanding them.

"I think they first started talking about something in 1997," said United Steelworkers Local 9231 President Todd Kegley. "Then it came up again in 1999, then 2001, then 2004. So it's exciting for us to hear about this finally moving forward now, but we're still waiting with baited breath because there's still a lot of work to do."

It's been 367 days since it last made headlines, but now, New Carlisle is buzzing all over again.

"We're all excited," said Local 9231 Vice President George Bauer.

"What would it bring to our area? You'd have jobs. It would help our town's economy," said Dorthy Kirk, who lives in town.

Arcelor Mittal Burns Harbor Division Controller Rick Campoli says the expansion would create at least 100 jobs off the bat, and most would be union steel jobs. Kegley says current union workers are paid $23.30 an hour.

Hundreds of construction jobs would also be created to build the $240 million dollar expansion.

But at a special town council meeting Tuesday, representatives from Mittal USA said without help, the project could land somewhere else.

"It's very critical in terms of our decision," said Campoli when asked about the tax abatement. "That's been the direct conversation that we've had on this."

If town leaders agree to "give them a break," Campoli said ground could be broken on the six acre, 250,000 square foot expansion as early as this fall. Campoli says it would be built on land just Southeast of the existing plant.

That would put the new site in line with a proposed rail spur in St. Joseph County or a proposed intermodal facility in LaPorte County, that could make transportation from the plant a breeze, and decrease the number of trucks that go in and out of it on a daily basis.

While Campoli says that hasn't played into Mittal and Nippon's decision on a site, he said it certainly doesn't hurt.

"I would say that's a very positive check mark, yes," he said.

"A facility like this would take advantage of [new rail options] in order to move product in and out more effectively than they do now," agreed St. Joseph County Project Future Executive Director Patrick McMahon. "This is an expansion we've anticipated for some time, and we would hope this would set the stage to move forward."

But some say, the company will build on the site even without a tax break, and giving them one would be irresponsible.

"I don't think it's right," said New Carlisle resident Calvis Mayfield. Everybody that's making a profit should share in the burden. I've been in business myself for 40 years and no one's ever given me a tax break. If they're making a profit, they should pay taxes just like everybody else."

Town leaders say they have to think "long term."

"The tax abatement is a short term thing," said Town Council Vice President Ron Colpitts. "I think I/N Tek I/N Kote has proven they're good neighbors. They've been given tax abatements in the past."

"They're here to stay," he continued. "They want to reinvest in the area. If you look at the long term, beyond the 10 year to the 20 or 30 year, it's going to come back to us 10 fold."

"Ten years without taxes is a lot better than people on unemployment," agreed Kirk.

The question now in a town abuzz all over again is, what will it take to get there?

"We're still waiting with baited breath," said Kegley.

They won't have to wait for long. New Carlisle's Town Council will hold a public hearing on the tax abatement plan on April 8 at 7pm.

The council could vote on the plan following that hearing.

More Good Stuff

WSBT Weather

icon
Current Temp 34.9
°
More Weather
More On Demand

Stock Quotes

YouNews

This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.
This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.

Tonight On WSBTFull Schedule

7.00
Paid Programming
7.30
Jeopardy
8.00
The Mentalist
9.00
48 Hours Mystery
10.00
48 Hours Mystery
11.00
WSBT News
11.35
CSI: NY
12.35
CSI: NY
1.35
CSI: Miami

Question of The Day

Will the new health recommendations for women change your health screening habits?

E-mail your comments. We'll pick some to read during WSBT News at 5.

  • YES
  • NO
Today's Mortgage Rates