Harsh Winter Helps Manufacturer's GrowthPosted: Updated:
The chief executive officer of Jasper Engines & Transmissions says, unlike most companies, the harsh winter was good for the DuBois County business and helped lead to this week's expansion announcement. Doug Bawel says customers include large delivery companies and municipalities, which can't postpone their services due to weather. The company announced plans this week to invest nearly $7 million into a new facility near its Jasper headquarters. The move is expected to create up to 235 jobs by 2017.
April 30, 2014
Jasper, Ind. -- Lt. Governor Sue Ellspermann joined executives from Jasper Engines & Transmissions, an engine, differential and transmission remanufacturer, today to announce the company's plans to expand its operations here, creating up to 235 new jobs by 2017.
The homegrown-Hoosier company, which remanufactures drivetrain components, plans to invest $6.9 million to purchase, renovate and equip a 220,000 square-foot facility located half a mile southwest of its 367,000 square-foot Jasper headquarters. The additional facility will house Jasper Engines & Transmissions' transmission division and is expected to be operational this fall.
"Jasper Engines & Transmissions is a great Indiana economic success story. The company that has prospered and provided hundreds of jobs for Hoosiers for over 70 years is expanding again," said Ellspermann. "We continue to see how our business-friendly tax and regulatory policies plus our dedicated workforce make Indiana a place where companies want to expand and locate. Our record-breaking job growth shows that Indiana truly is a state that works."
Today's announcement marks the third expansion by Jasper Engines & Transmissions in recent years, with the company exceeding its jobs goals on all previous projects. In 2012, the company announced plans to expand its headquarters in Jasper, investing $550,000 and adding 40 new jobs. This followed its 2010 announcement to invest more than $270,000 to relocate two of its out-of-state operations to its Crawford and Dubois county facilities, creating 65 new jobs.
Jasper Engines & Transmissions currently employs more than 2,600 associates throughout the United States, including more than 1,445 in Indiana. The company has already begun hiring additional manufacturing, maintenance, information technology, distribution, engineering and quality control positions in Jasper.
"When looking at our options for expansion, no other place measured up to the business climate in Indiana," said Doug Bawel, chairman and chief executive officer of Jasper Engines & Transmissions. "Jasper Engines & Transmissions is growing at a high rate and this expansion is thanks to our hard-working associates and our company's dedication to excellence when producing our products. We are excited to grow production here in Jasper, so for all your engine, differential or transmission needs, look no farther than Jasper Engines & Transmissions."
Founded in Jasper in 1942, Jasper Engines & Transmissions is a remanufacturer of drivetrain components, producing more than 141,474 gas and diesel engines, transmissions and differentials last year alone. Serving customers in the automotive repair, package delivery and aviation industries, the 100 percent associate-owned company has supplied NASCAR teams that have garnered wins on all major track configurations, including Superspeedway, Short Track and Road Course. Jasper Engines & Transmissions operates two remanufacturing facilities in Jasper, one in Crawford City, Ind. and an additional remanufacturing facility in Willow Springs, Mo., with 42 branch locations and two distribution locations across the country.
The Indiana Economic Development Corporation offered Jasper Engine Exchange, Inc. up to $1,150,000 in conditional tax credits and up to $200,000 in training grants based on the company's job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The city of Jasper will consider additional property tax abatement.
"The proposed expansion of Jasper Engines & Transmissions is a reflection of the vibrancy of the Jasper economy and ongoing investments our city is making to create an even better place to live and work," said Jasper Mayor Terry Seitz. "Jasper continues to set the pace for regional economic growth and we value the contributions of companies such as Jasper Engines & Transmissions who work in partnership with the city of Jasper and other economic development stakeholders. Today's announcement represents significant work by city, state and company officials and it sets the stage for long-range positive impact for both the company and the greater region."
About Jasper Engines & Transmissions
Jasper Engine & Transmission Exchange, founded in 1942, is a remanufacturer of drivetrain components, including gas and diesel engines, transmissions and differentials. The company also remanufactures marine components such as stern drives, outboard powerheads and lower units. Included in the product mix are engines and transmissions for performance and classic car restorations as well as engines and conversion systems for alternate fuel applications. JASPER operates three remanufacturing facilities and distributes its products nationwide through their 41 branch locations and two distribution centers. JASPER is committed to providing high quality, value-oriented products with excellent customer service.
Created in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Mike Pence. Victor Smith serves as the Indiana Secretary of Commerce and Eric Doden is the president of the IEDC.
The IEDC oversees programs enacted by the General Assembly including tax credits, workforce training grants and public infrastructure assistance. All tax credits are performance-based. Therefore, companies must first invest in Indiana through job creation or capital investment before incentives are paid. A company who does not meet its full projections only receives a percentage of the incentives proportional to its actual investment. For more information about IEDC, visit www.iedc.in.gov.
Source: Indiana Economic Development Corp.