The city’s Industrial Development Board on Thursday awarded a total of $4.3 million in incentives to two companies looking to expand existing facilities in Mobile.
The board voted to give $4.1 million in tax abatements over 10 years to Kemira to allow the company to expand its production of polymers used in both fracking and the pulp and paper industry.
The incentives come in the form of a 10-year, $2.4 million property tax abatement and a $1.7 million sales and use tax abatement. If the Mobile plant is awarded the expansion, it’ll add 20 employees. The $49 million investment will amount to a 40 percent expansion. It’s not a done deal, as the plant is competing with others internally for the expansion and still has to make a presentation to its corporate board.
Those 20 jobs will add to the 57 already at the plant on Paper Mill Road.
The board also voted to give AeroStar $200,000 in tax abatements. Those incentives come in the form of a 10-year, $120,000 property tax abatement and an $80,000 sales and use tax abatement. With the planned expansion, the company that repairs hydraulic, pneumatic and electrical components on aircraft would more than double. AeroStar would build a second facility and hire 28 employees to add to its 23. The move would represent a $2 million investment.
AeroStar President Greg Guzman said the facility is currently “bursting at the seams” and the expansion would help greatly if the company is able to earn a contract with Southwest Airlines.
Guzman said he plans to find talent locally and have them trained in 30 to 90 days once employment begins.