Tec Air Inc., a designer and manufacturer of plastic air movement components and systems, announced plans today to relocate its Willow Springs, Ill. headquarters to Munster, creating up to 258 new jobs by 2016. The Northwest Indiana Regional Development Authority (RDA) has pledged approximately $2 million from its Deal-Closing Fund as part of a package of local and state incentives that attracted the company to the region.
“This is the fifth time in the past two years that we have been able to use our Deal-Closing Fund to bring jobs and private investment to the region,” said Bill Hanna, President and CEO of the RDA. “To date, we have committed about $8 million from the fund in order to seal deals that, including Tec Air, have brought or are bringing more than $450 million in private investment and over 750 jobs to Northwest Indiana.”
The 48-year-old company will lease, equip and relocate its current Illinois headquarters into a 128,000 square-foot facility located in the Lake Business Center at 9200 Calumet Ave. in Munster. Tec Air will initially invest approximately $7 million in new equipment and building improvements in connection with the move. In addition to the new investment, Tec Air will also transfer almost $8 million of assets from its Illinois facility to the new location, bringing the company’s investment in Indiana to approximately $15 million.
“Tec Air joins a growing list of companies that have discovered what Hoosiers already know: Indiana is a state that works for business,” said Governor Mike Pence. “Companies in the Midwest and around the world recognize that Indiana is in the middle of everywhere. From our robust infrastructure, low-tax environment, talented workforce and ideal location as the Crossroads of America, opportunity for growth lies in Indiana.”
The expansion, which will be complete next spring, will house corporate offices, engineering labs, manufacturing, quality labs, warehousing and distribution. Tec Air’s investment in the new Indiana facility will include new injection molding and assembly equipment, such as process cooling, material handling, molding machines, robotics and R&D test equipment.
“Tec Air is experiencing significant growth, and we want to position ourselves to capitalize on that path of success. We looked at multiple locations for our expansion and chose Indiana for several reasons,” said Bob McMurtry, president of Tec Air. “Outgrowing our current location and Indiana’s pro-business environment solidified our decision to not only expand into Indiana but to relocate our entire operation from Illinois. I am confident the Munster location will allow Tec Air to achieve greater operational efficiencies and realize its growth potential. The relocation to a larger, state of the art facility will support our already great service, innovative products and world class quality.”
Tec Air will transfer approximately 150 jobs from its Illinois facility to its Munster location and plans to begin interviewing, training and hiring new employees in the first and second quarters of 2014. Interested applicants can contact Tec Air Human Resources via email at firstname.lastname@example.org.
The Indiana Economic Development Corporation offered Tec Air Inc. up to $2,260,000 in conditional tax credits and $190,000 in training grants based on its capital investment plans. These tax credits are performance-based, meaning until investments in Indiana are made, the company is not eligible to claim incentives. The city of Munster offered additional incentives.
“The town of Munster is very excited to be the new home of Tec Air, and we have been proud to work hand-in-hand with this outstanding company throughout their relocation process,” said Joseph A. Simonetto, president of the Munster Town Council. “The Munster Town Council has worked to make Munster a great home for residents and businesses alike. Beyond its investment in our community and the establishment of new jobs, we anticipate that Tec Air will be an outstanding corporate citizen.”
In addition to Tec Air, the RDA has employed its Deal-Closing Fund on four previous occasions to help bring companies to Northwest Indiana: Canadian National’s expansion of the Kirk Yard in Gary, Modern Forge’s relocation to Merrillville, Land O’Frost’s relocation to Munster and Pratt Industries’ expansion in Valparaiso.