La PORTE — German-owned American Renolit has announced plans to expand its manufacturing line at 1207 E. Lincoln Way, investing more than $25 million in the plant and new equipment and creating 30 additional jobs.
“These are 30 good-paying jobs,” said Bert Cook, executive director of the Greater La Porte Economic Development Corp. “These are people who eventually will work here, live here, buy their groceries here and send their kids to school here.”
“Anytime you have a local company that’s expanding, we want to celebrate, but it becomes really exciting when you have a company like this that every community wants within its borders,” Cook said.
The manufacturer of high-quality plastic films is expanding its existing 220,000-square-foot plant to keep pace with growing demand from existing customers and to develop adjacent markets and new applications, according to a news release from the Indiana Economic Development Corp.
The project is expected to begin later this year and be completed by the end of 2018.
American Renolit, a North American subsidiary of Renolit Group, has invested nearly $100 million in its La Porte plant since purchasing operations from the Solvay group in 1999. The company already has 175 associates and will hire production operators and maintenance technicians.
"This capacity extension confirms Renolit’s leadership in the calendered film market in the U.S., and I am proud that it demonstrates our drive to meet our customers' current and future needs, our strong commitment to the La Porte community and that it recognizes and rewards the dedication of our employees as a major contributor in the continued success of American Renolit Corp.,” company president Renaat Demeulemeester said in the release.
The company produces calendered flexible and rigid films for the graphics, label, furniture and window profile industries.
La Porte City Council on Monday night approved a resolution approving the use of enterprise zone investment deduction credits for the company. Mayor Blair Milo said American Renolit has a long history of success in La Porte.
“Their international presence and leadership within the high-quality plastic film industry make them a perfect fit for our manufacturing sector and contribute to La Porte’s reputation as a place where manufacturing thrives,” Milo said in a statement. “I am excited to celebrate this expansion project with American Renolit, another spoke in the Hub of Awesome, and look forward to many more years of partnership with this great company.”
IEDC offered the company up to $275,000 in conditional tax credits based on the company’s job-expansion plans. These incentives are performance-based, meaning the company is not eligible to claim the credits until it fills the positions.
From the city, the company will get a phase-in of its property tax liability over the next 10 years. In order to be eligible for the program, the company will pay a fee each year, based on 35 percent of the savings, to the La Porte Urban Enterprise Association, giving the company a net property tax savings of 65 percent. The UEA uses these fees to fund grants and other programs in the city’s enterprise zone, Cook said.