NEW ALBANY — The New Albany City Council granted a tax break to a local manufacturer planning another large expansion.
Beach Mold & Tool, Inc. is investing $12.3 million to prepare for a more than six-year contract with an automotive equipment manufacturer.
It's the second large-scale contract announced by the company in the last few years.
Beach Mold & Tool manufactures injection molded parts and assemblies for the automotive, medical and business systems industries.
The tax abatement approved by the council Monday applies to real property taxes for 10 years and personal property taxes for five years.
Beach Mold & Tool Chief Financial Officer Dale Yost said these tax breaks are a "big help" for large scale expansions.
"As you start a new contract with any customer, there are costs you have to incur for equipment and warehousing," Yost said, declining to disclose the automotive manufacturer recently contracted.
The investment is the second phase of an expansion project, which will add 100,000 square feet to a recently built warehouse. The company also plans to buy new equipment and install a crane.
"Beach Mold & Tool, Inc. is proud to have received a second major contract, in as many years, as a result of our expertise and dedicated workforce in New Albany," CEO and Owner William Beach stated in a news release. "This expansion will help assure that Beach Mold & Tool continues to grow in Southern Indiana."
In 2015, Beach Mold & Tool announced a $13.7 million project that included construction of the 123,000 square foot warehouse on Green Valley Road.
Production for the first large-scale contract is expected to begin this year. Yost expects the second phase of construction to finish in the second quarter of next year, with the contracted work to begin in 2019.
Beach Mold & Tool announced in 2015 that the first project would result in 160 new jobs, for which the manufacturer is currently hiring.
This most recent contract may not result in new jobs, though Yost said it will aid in job retention. He expects the contract work will replace smaller existing contracts with the company after they are completed.
The manufacturer employs more than 500 people. In Indiana, manufacturers employ 16.8 percent of the workforce, according to economic development organization One Southern Indiana.
“Beach Mold & Tool is an exceptional local employer, and they have recognized that New Albany is a great place to continue to grow their business," New Albany Mayor Jeff Gahan said in a news release. "We are very happy that Beach Mold & Tool will be expanding in our community."