RR Donnelley Announces Investment, Requests Tax Abatement
July 28, 2016 at 4:25 p.m.
By Jordan Fouts-
Company Vice President of Manufacturing John Pierog announced what he called a “very significant” capital investment in the Warsaw plant, which he said will not only preserve existing jobs but also require 75 new hires by the time the equipment is up and running early next year. He said the investment is meant to attract a potential new customer and keep the company competitive.
The investment marks a turnaround for the printing company with a 50-year presence in Warsaw, Pierog noted. He said the 2008 recession hit the company hard because of how much it hurt their customers, combined with growing competition from digital media.
It’s a company George Robertson said he was told to worry about when he first came to the Kosciusko Economic Development Corp. four years ago.
“They lost a few jobs, but they set their sight on new markets and new customers and they kept their business in the county,” Robertson said.
RR Donnelley has made other multi-million dollar investments in equipment to attract customers in recent years, Pierog said. He presented a request Thursday for a 10-year phased-in tax abatement on the personal property purchase, which will receive public hearing and a vote during a special council meeting July 24 at 7 p.m.
Council also accepted a compliance statement on an existing tax abatement for the company, which they had tabled last month over questions about employment targets. RR Donnelley was among nine companies whose abatements were up for review in June.
Council member Larry Teghtmeyer remarked Thursday on the county’s roster of abatements on corporate personal and real property taxes, saying he wanted to dispel the misconception that they represent “corporate welfare.”
“We could make a political football out of this, but it’s our job here to make business decisions. These corporations are making multi-million dollar investments and they’re willing to make them in the county,” he said. “The big companies are seen to be the ones we’re after, but that’s not true – we’re after all the companies that bring quality jobs.”
Robertson also reported on the financial health of the county, noting that Kosciusko has 2,400 more jobs than last year – a 7.5 percent increase, among the highest in Indiana – with 400 added in the past few months. He said only three counties have a better employment rate.
There are also 600 people who used to work outside the county who now stay here to work, and 500 more who are coming here from other counties, according to a commuting study Robertson cited.
He also noted there are 12 projects in the pipeline and he expects to make two more announcements on major employers in the coming weeks.
“I think this will maybe be the best year we’ll have in terms of growth,” he said.[[In-content Ad]]
Company Vice President of Manufacturing John Pierog announced what he called a “very significant” capital investment in the Warsaw plant, which he said will not only preserve existing jobs but also require 75 new hires by the time the equipment is up and running early next year. He said the investment is meant to attract a potential new customer and keep the company competitive.
The investment marks a turnaround for the printing company with a 50-year presence in Warsaw, Pierog noted. He said the 2008 recession hit the company hard because of how much it hurt their customers, combined with growing competition from digital media.
It’s a company George Robertson said he was told to worry about when he first came to the Kosciusko Economic Development Corp. four years ago.
“They lost a few jobs, but they set their sight on new markets and new customers and they kept their business in the county,” Robertson said.
RR Donnelley has made other multi-million dollar investments in equipment to attract customers in recent years, Pierog said. He presented a request Thursday for a 10-year phased-in tax abatement on the personal property purchase, which will receive public hearing and a vote during a special council meeting July 24 at 7 p.m.
Council also accepted a compliance statement on an existing tax abatement for the company, which they had tabled last month over questions about employment targets. RR Donnelley was among nine companies whose abatements were up for review in June.
Council member Larry Teghtmeyer remarked Thursday on the county’s roster of abatements on corporate personal and real property taxes, saying he wanted to dispel the misconception that they represent “corporate welfare.”
“We could make a political football out of this, but it’s our job here to make business decisions. These corporations are making multi-million dollar investments and they’re willing to make them in the county,” he said. “The big companies are seen to be the ones we’re after, but that’s not true – we’re after all the companies that bring quality jobs.”
Robertson also reported on the financial health of the county, noting that Kosciusko has 2,400 more jobs than last year – a 7.5 percent increase, among the highest in Indiana – with 400 added in the past few months. He said only three counties have a better employment rate.
There are also 600 people who used to work outside the county who now stay here to work, and 500 more who are coming here from other counties, according to a commuting study Robertson cited.
He also noted there are 12 projects in the pipeline and he expects to make two more announcements on major employers in the coming weeks.
“I think this will maybe be the best year we’ll have in terms of growth,” he said.[[In-content Ad]]
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