Work is already underway on a nearly $70 million expansion at the AM General plant to allow for the assembly of the Joint Light Tactical Vehicle for the military.
St. Joseph County Council gave final approval Tuesday night for tax abatement for the project, which involves a 74,000-square-foot addition to AM General’s Plant 2 estimated at about $8.8 million and another $59.5 million for new tooling and equipment.
Council abated seven years in real estate taxes for the addition and five years in personal property taxes on the new equipment for a total savings of $3.3 million on the project, which is located along McKInley Highway on the eastern edge of Mishawaka.
More:AM General's military contract could reach $8.6 billion, resulting in jobs and investment
AM General is under a tight deadline to get the plant operational. After the building is completed, it is expected to begin receiving new equipment this summer and begin hiring and training up to 329 new employees with the goal of starting production of the JLTV next summer
In February, the South Bend-based company was awarded a five-year contract with up to five additional one-year contracts to build up to 20,682 JLTVs and 9,833 trailers for the military, beating out Oshkosh Defense, the original producer of the vehicle.
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