JVC Hendricks Box Co. Inc. in Seymour is investing in new equipment, allowing the company to retain its work force and hire additional employees.
Seymour Common Council approved a 10-year tax abatement for the investment during a regular meeting this week.
Jim Plump, executive director of Jackson County Industrial Development Corp., spoke on behalf of the company in requesting the abatement.
He explained JVC would be spending $445,581 in manufacturing equipment and $105,243 in logistics equipment for a total investment of $550,824.
The equipment, some of which is used, includes a rotary die cutter, strapping system, conveyor systems, baler/scrap system and specialty folder/gluer.
Whitney Allman, JVC's controller, assured council members the used equipment would have a life of at least 10 years, to be eligible for abatement.
"In addition to this investment, they are spending an additional $75,000 on equipment that is not new to Indiana," Plump said.
Equipment that has been used at another location within the state and is purchased or transferred is not eligible for tax abatement.
Plump said the investment will "add two new people to Hendricks' staff."
The company now employs 40 and uses the services of temporary employees through Elwood Staffing, averaging 27 to 30 workers per week not included in the total employee count.
JVC Hendricks Box Co., 2245 Killion Ave. in the Eastside Industrial Park, is a manufacturer of custom and corrugated boxes and packaging. Products include shipping boxes, corrugated containers and point-of-purchase displays.
Installation of equipment was expected to begin Thursday and be completed Feb. 15, 2010, according to a statement of benefits the company filed with the city earlier this month.