Hoosier Racing Tire Corp. is budgeting $8 million to expand rubber compounding capacity at its race tire plant in Plymouth, Ind.
The project, which includes adding a 37,000-sq.-ft. expansion to the 32-year-old plant in Plymouth, is scheduled for completion by the fourth quarter of 2012, the company said.
The project will allow Hoosier to bring all of its rubber compounding needs in-house, said John DeSalle, vice president of engineering and manufacturing, in comments he made at a recent meeting of the Plymouth Common Council. Hoosier outsources as much as one-third of its rubber needs to compounders in Ohio, he said.
Expanding rubber mixing will create 16 jobs at the Plymouth plant and four more related positions at the firm's nearby Lakeville headquarters. Hoosier employs more than 400 at the two facilities.
Hoosier did not specify what type of equipment it's buying, but Mr. DeSalle said the firm is budgeting $2.7 million for the physical property work and $5.6 million for the equipment and installation.
“This is a major expansion for our company, and it speaks to our confidence in Hoosier Tire's continued growth and viability in this area,” Mr. DeSalle said. “Last year was good to us, and this is a timely investment. Financing of the project was sourced from our long time partners at 1st Source Bank.”
Jennifer Laurent, executive director of Marshall County Economic Development Corp., said, “We have seen that companies like Hoosier Racing Tire are able to grow in Marshall County with decisive plans to outreach competition.”
The Indiana Economic Development Corp. (IECD) has offered the company conditional Economic Development for a Growing Economy (EDGE) tax credits worth up to $140,000 based on projected creation of 20 jobs by 2013; Hoosier can claim the credits once new employees are hired, the IECD said.
The City of Plymouth is considering a tax abatement petition for Hoosier. The Plymouth Common Council recently declared a piece of real estate on Pidco Drive, where the plant's located, to be within an economic revitalization area.
Separately, Hoosier disclosed that as of Jan. 1 Hoosier Racing Tire and Hoosier Tire & Rubber—historically two separate companies—will merge as one company to be known as Hoosier Racing Tire.