Two companies are planning to invest nearly $20 million into their Seymour operations this year, creating economic growth and job opportunities for the area.
The Seymour City Council recently approved tax abatement requests from Cummins Inc. and Excel Manufacturing.
The abatements allow both companies to phase in paying taxes on the investments over a period of 10 years.
Speaking on behalf of Cummins, Jim Plump, executive director of Jackson County Industrial Development Corp., said the company was seeking three tax abatements — two for personal property and one for real estate.
“Last year, Cummins announced they were looking at a multi-year investment and this is year two of that,” Plump said.
The investment for all three abatements for the engine maker totals $17.74 million. They will start in the middle of May and wrap up by the end of the year, according to a statement of benefits filed with the city earlier this month.
Although no new jobs are being projected at this time, Plump said it’s typical of Cummins to hire more workers as a result of their investments.
“Job growth has really not been an issue,” he said. “Their numbers have dropped slightly due to COVID and some other business issues.”
Cummins currently employs 950 workers at its Seymour plant and is the third largest industrial employer in Jackson County.
Excel will be spending $1.5 million to purchase new manufacturing equipment and for related expenses, according to a statement of benefits.
Brent Kilgas, president of Excel, said the investment is being made in order to complete projects and fill orders for customers.
The company, located in the Eastside Industrial Park in the 1700 block of East Fourth Street Road in Seymour, offers production machining, engineering, fixture design and building and assembly services.
“Our plan is to purchase CNC machines, industrial robots and supporting equipment to manufacture these items for our customers,” Kilgas said.
By updating to more current technology and manufacturing equipment, Kilgas said Excel has the ability to remain competitive in the global marketplace.
As a result of the investment, Excel will be adding three new employees and retaining its current workforce of 86 workers while generating an estimated $3.75 million in annual salaries.
The investment was expected to begin last week and will be completed by the end of June.