KMI asking for approval to expand
Tuesday, December 04, 2012 11:43 PM
KALIDA - Kalida Manufacturing Inc. (KMI) in Kalida has made a proposal to the village for an expansion project. The application was submitted on Nov. 19 through the Putnam County Community Improvement Corporation (CIC.) The project is designed with multiple phases and included: a low roof expansion for use in welding production and for parts inventory and a high roof building expansion to be used for stamping production.The expected increase in full time production positions would be a minimum of 41 within the three year project.
"We are hoping to provide value for our shareholders, associates and community, and commitment to continuous improvement. It is reinforced by our 20/20 vision statement to have an increased level of production capability and capacity. All of these are based on wanting to assure the future of all stakeholders," said KMI manager, Rick Esch. "As for community benefit, the direct benefit is the one percent tax our associates pay to the village of Kalida on their earnings."
The tentative completion date written within the outline would be July of 2013, with new weld lines added through a one year period. The second year of expansion would include a 600 ton progressive press and 2,500 ton transfer press to be installed and operational by Dec. 2015.
"For the indirect benefit to area business there is the halo effect. In economic models the direct dollars paid in wages are shown to recirculate in the area multiple times benefiting all local businesses. Also the village residents will see a road improvement project completed that includes curbs and sidewalks because of the job creation," said Esch.
KMI then plans to bring additional jobs within the facility to around 440. Once this project is approved it could serve as the base for additional expansions.
"The current expansion project has absolutely no connection to the previously proposed energy efficiency improvement project. Our focus right now is on meeting our customer's demand for KMI products," said Esch. "The citizens of Kalida voiced their support for the village administration to make decisions on wind turbines as appropriate. For now the federal investment tax credit has not been extended into future years so the project is not a priority."
In conjunction with the expansion project KMI is working with the CIC, Kalida council and JobsOhio to reconstruct Eastown Road along the west KMI property line to provide a secondary access point for the stamping operations.
As the legislation was given to Kalida Council for the expansion approval, no action has been recorded at this time.