Kimball Expanding Indiana Operations
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowJasper-based Kimball International Inc. (Nasdaq: KBAL) has announced plans to consolidate metal fabrication operations from Idaho to three facilities in southern Indiana. The global furnishings manufacturer will invest $9.5 million in the move, which it says will result in up to 160 jobs by 2016.
November 5, 2014
News Release
Jasper, Ind. — Kimball International, Inc. (NASDAQ: KBAL), a global furnishings manufacturer, announced plans today to consolidate its metal fabrication operations from Post Falls, Idaho to southern Indiana, creating up to 160 new jobs by 2016.
“Kimball and Indiana have something in common—we both know about building,” said Governor Mike Pence. “While Kimball builds furniture in Indiana, it's also helping to build a Hoosier economy that's quickly becoming one of the fastest growing in the nation. With 50 states and a world of options, companies like Kimball choose to grow in Indiana, a state where their dollar goes further, bolstered by lower taxes, lower business costs and an even stronger workforce.”
The Jasper, Indiana-headquartered company, which produces custom furnishings for the global furniture industry, will invest $9.54 million to transfer metal fabrication capabilities and assembly operations into three company-owned facilities located in southern Indiana. The company plans to begin the consolidation immediately, which is estimated to be completed within two years.
“Today's announcement to better optimize our supply chain and manufacturing footprint, and to reduce our cost structure post-spin, reflects our focus on our markets and positions Kimball for long-term growth,” said Bob Schneider, chief executive officer and chairman of the board of Kimball International. “Savings from this plan will, in part, be redeployed into enhancing our marketing and new product development.”
Founded in 1950 in Jasper, Kimball International manufactures design-driven, technology-savvy, high-quality furnishings sold under the company brands National Office Furniture, Kimball Office and Kimball Hospitality. With customers located across the globe, the company has been named a Fortune Most Admired company and one of Forbes' Best in America companies. Kimball has approximately 2,000 full-time employees at 17 locations in Indiana.
The Indiana Economic Development Corporation offered Kimball International, Inc. up to $1,000,000 in conditional tax credits and up to $300,000 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.
In 2012, the company's sister brand unit, Kimball Hospitality, announced plans to expand its case goods furniture product line operations in Jasper, investing $932,000 and creating 20 jobs. The company has since exceeded its hiring expectations, hiring more than 50 employees to date.
About Kimball International
Kimball International, Inc. is a leading manufacturer of design driven, technology savvy, high quality furnishings sold under the Company’s family of brands, National Office Furniture, Kimball Office and Kimball Hospitality. Our diverse portfolio provides solutions for the workplace, learning, healing and hospitality environments. Customers can access our products globally through a variety of distribution channels. Recognized with a reputation for excellence and a recipient of the Forbes 2014 America’s Most Trustworthy Companies designation, Kimball International is committed to a high performance culture that is committed to sound ethics, continuous improvement and social responsibility. To learn more about Kimball International, Inc. (NASDAQ: KBAL), visit www.kimball.com.
About IEDC
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.