Peru Common Council approved a five-year tax abatement for Snavely Machine and Manufacturing during its regular monthly meeting on Monday.
The abatement was requested and approved because Snavely is investing more than $4.8 million into their plant and $250,000 in real property, and intends to create 20 new jobs.
“As we’ve grown, the automotive industry has added our products into their vehicles,” Snavely Chief Financial Officer Jason Amonett said at the meeting.
Snavely Machine and Manufacturing uses high-tech equipment to cut and craft steel into automotive parts.
This equipment Snavely is purchasing for their operations is expensive.
The twelve pieces of machinery the company is purchasing to expand operations is expected to cost $4.8 million.
After cutting a part, Snavely “impregnates” the metal parts with resin. To properly protect the product from chemicals and high temperatures, the manufacturers force resin into the metal’s porosity to form a pressure tight part, according to Snavely.
The company then delivers the product to its customers.
Due to the increasing demand to make more products, the employees have to load and unload more stuff—which is why Snavely is investing $250,000 to turn unused warehouse space into new loading docks.
“If you build the stuff, you got to get it out the door,” Councilman Kurt Krauskopf said at the meeting.
This expansion is also why Snavely is adding positions for operators – those who load and unload the trucks – truck drivers and quality inspectors.
The investment will also help secure the positions of the 170 employees that currently work for Snavely, according to Miami County Economic Development Authority Executive Director Jim Tidd.