Kernan Announces State Incentives Of $10 Million

Zimmer Holdings Inc. and Indiana Gov. Joe Kernan Friday announced that Indiana plans to grant more than $10 million over the next 10 years in tax credits and other incentives related to expansion of Zimmer's workforce facilities in Warsaw. Zimmer recently applied to the state based on an analysis of how to rebalance its global workforce needs following the acquisition of Centerpulse AG, a Swiss-based orthopedic company.

Zimmer plans to spend approximately $64 million through 2007 in expanding its existing office, manufacturing and distribution capacity by approximately 200,000 square feet. Local payroll is expected to increase by more than $15 million by the end of 2005. The company is in the final stages of determining whether the manufacturing expansion will be through the purchase of an additional facility or through additions to existing Zimmer facilities. Construction on the distribution center addition will begin in May.

Kernan said, "As the global economy continues to evolve, we've worked hard to maximize Indiana's position in sectors that are important to future job growth. Life sciences is one of four key industry clusters we've targeted for job creation and retention through the Energize Indiana economic development initiative. Zimmer is just one of the reasons that Indiana stands on solid ground in the life sciences industry. These are the jobs of the 21st century - high-wage, high-tech positions that put Hoosiers on the cutting edge of innovation."

Ray Elliott, Zimmer chairman, president and CEO, said, "The orthopedics industry in Warsaw has enjoyed excellent support from the state of Indiana, and Zimmer in particular has received state training grants and has been involved in several 21st Century Technology Fund projects. The availability of state of Indiana incentives was a significant positive as we considered how and where to focus our global resources. We are delighted that the state has indicated it plans to join with us in making further investments in the future of Warsaw and Indiana."

Warsaw Mayor Ernie Wiggins said, "On behalf of the city of Warsaw, I would like to express our sincere appreciation for the investment Zimmer has made and continues to make in our community. This expansion will further add to the distinction of being the 'orthopedic capital of the world.'"

Zimmer estimates approximately 400 jobs will be created in Warsaw by the end of 2007, which reflects a mix of manufacturing, manufacturing support and professional positions. Certain functions, such as finance, marketing, research and product development, are being transferred from a former Centerpulse facility in Austin, Texas, that will continue throughout 2004. Transfer of manufacturing and manufacturing support functions will begin in August and continue through most of 2005. Zimmer also plans to seek available tax abatement from the city of Warsaw on the equipment it will add to support the job growth.

The state of Indiana incentives are expected to come in the form of Economic Development for a Growing Economy tax credits over a 10-year period, Hoosier Business Investment Credits and an Indiana Skills 2016 Workforce Training grant.

During the past month, the state has assisted in the creation of more than 2,100 new jobs across Indiana. During the same time period, the Department of Commerce provided training assistance to help more than 4,700 Hoosiers update their skills. For more information on Commerce programs, call one of its regional offices at 800-463-8081 or visit the Web at www.indianacommerce.com [[In-content Ad]]