NEW ALBANY — A local manufacturer is preparing to expand its operations in New Albany with the assistance of tax incentives from the city.
The New Albany City Council on Thursday approved a resolution supporting property tax deductions for Cimtech Inc., which will allow the company to add new equipment at its New Albany manufacturing shop, located at 325 Park East Blvd. The council voted 7-0 in favor of the incentives — council members Scott Blair and Dan Coffey were absent from the meeting.
Cimtech, a computer integrated manufacturing technology company, was founded in 1975, and it has been in New Albany since 1992. The company has 32 employees in New Albany, and it will be able to add six new positions with the upcoming expansion, Cimtech President and CEO Jesika Young said. The council awarded the company an abatement of personal property taxes for five years for the new manufacturing equipment.
"Cimtech has been around 44 years, and we want to continue to be a staple in the community and continue to be a wonderful partner not only to our customers but the community at large, and with the help of the city and the support of the city, this will allow us to continue to do that," Young said.
The company purchased two Louisville companies, Axis Machine and Tool and Action Material Handling, in August, allowing Cimtech to enhance its capabilities and increase its footprint by 28,000 square feet, according to Young. The company plans to expand the operation in the New Albany location with the addition of CNC machines, welding equipment, cranes, bending machines and other fabrication/machining equipment.
The average tenure on Cimtech's team is 20 years, Young said, and she also looks forward to providing opportunities for the next generation of manufacturers.
"Our goal and objective truly is to reach back and bring the next generation along with manufacturing, so this will allow us to — it’s new innovation, it’s new machinery, it’s new capabilities," she said.
The incentives from the New Albany City Council is playing a major role in Cimtech's decision to expand its New Albany operations, Young said.
"It certainly is an incentive that helps small businesses such as Cimtech, and that goes into our decision making, because we do have a second location in Louisville, so ultimately, this is aiding in our decision to expand either here or in Kentucky," she said.
Josh Staten, redevelopment director with the City of New Albany, said he looks forward to seeing Cimtech's expansion in the industrial park, located near Indiana University Southeast.
"The younger leaders of this company — they've got a lot of hope and a lot of promise, they believe in the potential of this company, and for them to choose to stay in New Albany and expand in New Albany means a lot to the city, it means a lot to the people who live here and it means a lot to the people who eventually work for this company, so it's an exciting project," he said.
Mayor Jeff Gahan expressed his support for Cimtech's expansion project in a press release.
“Everyone knows that the New Albany downtown area has continued to grow and flourish," Gahan said. "What is less noted, but just as viable, is the growth in manufacturing and jobs in New Albany. Cimtech, a great long-time, hometown company is just another example of the growth New Albany is experiencing in all sectors of the economy. As always, the City of New Albany stands ready to assist Cimtech, and all local businesses, any way we can.”