0212-2007 Schafer Gear Works chooses South Bend for ‘substantial investment’

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O� 11,013 T$.& 4 PEACE r r _. 1865 Office of the Mayor NEWS RELEASE February 12,2007 3:10 p.m. Contact: Mikki Dobski, Director of Communications& Special Projects, 235-5855 or 876-1564 Don Inks, Director of Economic Development, 235-9339 Schafer Gear Works chooses South Bend for `substantial investment' A South Bend company is making an $843,000 investment in its headquarters in the city's Airport Economic Development Area rather than in two other cities where the firm has production facilities. The South Bend Common Council will consider a resolution tonight (Feb. 12,2007) to grant a five-year tax abatement to Schafer Gear Works, 4701 Nimtz Parkway, to enable the company to add new equipment and expand its operations. Schafer Gear Works, a leading producer of high-precision, custom-engineered gears and machined parts,will buy and install equipment valued at $843,000 and create one new, permanent full-time position with an estimated salary of$34,320. The new equipment consists of a gear-grinding machine plus automation and a hob sharpener. Schafer Gear Works was one of three companies cited by Mayor Stephen Luecke in his 2007 State of the City address on Feb. 5. At least two others,McCormick and Co. and Federal Mogul, also are "making substantial investments in new equipment for their facilities,"Luecke said. "In highly competitive markets,these businesses cannot maintain sales and employment levels without continual investment in more efficient equipment. In some instances, these investments do not bring new jobs, but they help to make the existing job base more secure." Schaefer's expansion will enable ongoing employment of the company's 73 full-time employees with an annual payroll of more than $2.7 million. -more-