NEW CARLISLE — Just hours after the town of New Carlisle approved a tax abatement plan for a local steel company, Japan-based Nippon Steel Corporation announced Wednesday it will expand the I/N Tek I/N Kote plant, creating 100 new jobs by 2010.

The companies will invest more than $240 million to build and equip a 240,000 square foot facility at the existing site on U.S. 20.

"It's yet another big win for the Indiana economy, one with special excitement because it involves one of our longstanding leading corporate citizens. As we're seeing happen time and time again, companies like ArcelorMittal are choosing Indiana over many other states to do business because of our competitive tax climate, high-quality workforce and unmatched infrastructure," said Governor Mitch Daniels.

The companies plan to break ground on the project later this year. They currently employ more than 200 people.

The New Carlisle Town Council approved a 10-year tax abatement Tuesday night. Officials say even with the abatement, the new construction will still bring in an estimated $15 million in taxes.

The Indiana Economic Development Corporation offered I/N Kote up to $4.8 million in performance-based tax credits and up to $100,000 in training grants based on the company's job creation plans.