A local plastics manufacturer plans to invest more than $4 million in new equipment this year.

The Seymour City Council voted 6-0 on Monday night to approve a request from Silgan Plastics for tax abatement for a period of 10 years. Councilman Seth Davidson did not attend the meeting.

The abatement schedule allows for Silgan to be 100% exempt from paying taxes on the equipment in the first year, but then the company must pay 10% more each year until it is making full property tax payments by the 11th year.

The company, located at 3779 N. County Road 850E on the city’s far south side, is looking to spend $4.85 million on new manufacturing equipment to be used in the production of plastic containers for the health care, food, personal care and household/industrial markets.

With its headquarters in Chesterfield, Missouri, Silgan has 19 manufacturing locations across the United States and Canada, including two in Indiana.

Installation of equipment is expected to begin March 1 and wrap up by the end of May, said Jim Plump, executive director of Jackson County Industrial Development Corp.

Plump said the project will created an estimated three new jobs with salaries totaling $170,040 and help retain 202 workers who generate salaries of nearly $13 million.

Silgan is the seventh-largest industrial employer and 14th overall in Jackson County, according to JCIDC.