By Debbie Blank, Batesville Herald Tribune
Batesville finally has good news on the economic front. By expanding what it can do, an established industry, Batesville Tool & Die, will be able to take on an extra $9 million worth of business.
That's what finance Vice President Jerry Kretschmann told the Batesville Economic Development Commission April 2.
He asked the panel to make a recommendation to the city council for a 10-year tax abatement on $797,260 of personal property.
BT&D must purchase high-tech hydraulic presses for a new process calling toxing, which bonds metals together.
Personal property taxes on the new equipment without the abatement are $51,000 over 10 years and with it $21,000, a savings of $30,000, according to Kretschmann.
The anticipated job orders will "allow us to bring back the equivalent of 42 positions," adding $1.1 million to the annual payroll.
About 210 employees are working 40 hours on and 40 hours off now. "Most of our hourly workforce has been doing that" as auto industry-related jobs lessened. With the new toxing process, 84 of those workers will return to full-time status, he said.
Now the company is using mechanical presses for the toxing, which is "very cumbersome and not cost effective." He hopes to start using the new equipment "as soon as possible."
Adding toxing to BT&D's capabilities could lay the groundwork for additional jobs down the road, Kretschmann added. "There are other types of business we could go after now with this new technology. It's pretty sophisticated."
Mayor Rick Fledderman said BEDC could suggest either a five- or 10-year abatement. The commission voted to recommend to the council the longer term.
BEDC Chairman Tom Jeffers told Kretschmann, "We certainly wish you well with this issue."