Marion to be New Home For Energy Component Maker

December 7, 2010

News Release

Marion, Ind. -- Vela Gear Systems LLC, a startup manufacturer of mechanical power transmission components used in several markets including wind energy, announced today that it will establish its first manufacturing operations here, creating up to 163 new jobs by 2013.

The company, which manufactures components for planetary gears and gearboxes, will make a multi-million dollar investment to construct a 250,000 square-foot manufacturing facility adjacent to Ivy Tech Community College in Marion.

"The potential new jobs and investment associated with this project will continue Indiana's forward momentum as a leader in the clean-tech market," said Mitch Roob, Secretary of Commerce and chief executive officer of the Indiana Economic Development Corporation.

Construction on the new facility is scheduled to begin by mid-2011. New equipment phase-in and hiring will take place in late 2011 with operations set to begin by mid-2012.

"Indiana is an ideal location due to the high-skilled workforce, and a central location close to a variety of North American customers," said Noel Davis, founder and chief executive officer of Vela Gear Systems LLC.

Vela Gear Systems LLC was founded by veterans of the gear making industry from across the Midwest. The facility will be among the only U.S. manufacturers of large scale gears for wind turbine assemblies.

The Indiana Economic Development Corporation offered Vela Gear Systems LLC up to $1.6 million in performance-based tax credits, based on the company's job creation plans. The city of Marion will consider the establishment of a tax increment financing district at the development site.

"We are proud to welcome Vela Gear to Marion. Along with Governor Daniels' statewide efforts, we have been working hard to make Marion an attractive place to start and grow business," said Mayor Wayne Seybold. "Vela Gear represents the outcomes of these efforts and the future of advanced manufacturing for Marion and Indiana."

Vela Gear Systems' announced expansion comes just one week after electrical systems manufacturer, Northwind Electronics announcement that it will invest $954,000 to purchase, improve and equip the former General Motors Plant 16 manufacturing facility in nearby Anderson, creating up to 100 new jobs by 2013.

About Vela Gear Systems
Vela Gear Systems LLC is a startup manufacturer of mechanical power transmission components used in several markets including wind turbines. Founded by veterans of the gear manufacturing industry in the U.S., the company will establish its first production facility in Marion, Ind. For more information visit: www.velagear.com

About IEDC
Created by Governor Mitch Daniels in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Daniels. Mitch Roob serves as the chief executive officer of the IEDC. For more information about IEDC, visit www.iedc.in.gov.

Source: Indiana Economic Development Corporation