So you know
• Conforma Clad was bought by Pennsylvania-based Kennametal Inc. in 2004. Conforma Clad was founded in New Albany in 1981.
Kennametal Inc. received approval from the New Albany Redevelopment Commission for a tax abatement that will stimulate expanding its Conforma Clad facility, located at 501 Park East Blvd.
The City Council must give final approval of the tax abatement before it’s official. The commission’s OK covered the reduction in the tax-increment financing district where Conforma Clad is located.
The New Albany facility employs 187 and is expected to add 25 to 30 employees over the next five years. The average hourly wage at Conforma Clad is $17.50, according to the plant manager.
“We are excited about the opportunity to expand our New Albany operations,” stated Colleen Cordova, Kennametal vice president of energy, chemicals and power business, in a news release.
“Kennametal recently announced its 19th consecutive quarter of growth and we are looking forward to investing in continued long-term growth of our operations.”
As late as April, Kennametal was considering moving out of New Albany, a company representative said during Wednesday’s commission meeting. The prospect of a tax abatement is one reason they decided to stay, he said.
The company plans to invest $8.87 million in new machinery and equipment within five years and add 41,700 square-feet to its New Albany facility.
That would equate to $2.8 million in real property improvements.
“This region provides an excellent combination of qualified employees, tax incentives and infrastructure, which really positions Southern Indiana well in today’s economy,” said Michael Dalby, president of the economic development agency One Southern Indiana.
If approved by the council at its Nov. 20 meeting, the tax abatement would allow phasing in of property taxes for the expansion. The idea of a tax abatement is to lure companies to expand by keeping property taxes low initially.
The plan is that the city’s tax base increases and more jobs are added.
“In these challenging economic times, it is always good news when a company retains jobs and invests capital into the community,” stated Mayor Doug England, in a news release.
New Albany’s unemployment rate is 6.6 percent, slightly higher than the national average but lower than Louisville’s, according to Indiana University Southeast Associate Professor of Business Uric Dufrene.
But the rate is still cause for concern compared with 2007.
“When we look at the monthly change in unemployment from the previous year, we do see a significant spike in the unemployment rate in the past year,” Dufrene said.
The unemployment rate stood at 4.3 percent for New Albany in September of 2007, according to Dufrene.
Which is why England banks on companies like Kennametal expanding and locating to New Albany and creating more jobs. Grant Line Industrial Park West is in the process of being annexed to offer more space down the road and tax abatements have been given to numerous businesses to stimulate growth.
According to the company, customers buy approximately $2.7 billion in products and services from Kennametal annually, while the industry employs 14,000 people over 60 countries.
“The City of New Albany is excited Kennametal chose to remain and grow here,” England said.
Floyd County
Bright future for New Albany company
Conforma Clad expanding with help from tax abatement
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