Ditech Inc., located at 1151 Walnut St., Edinburgh, plans to create 10 new jobs and invest $3 million to purchase equipment.
ANDY BELL-BALTACI | DAILY JOURNAL
An auto parts manufacturer is investing $3 million to upgrade equipment at its Edinburgh plant.
Edinburgh’s town council unanimously approved a personal property tax abatement Monday for Ditech Inc., which is located at 1151 Walnut St., on Edinburgh’s southside.
The company has been in Edinburgh since 1996. Workers there manufacture tubular products and exhaust components for motor vehicles, according to Ditech’s website.
Ditech was approved for a 10-year abatement to purchase $3 million in equipment including a Smart Cobot, welding equipment and servo presses, according to town documents. Smart Cobots are collaborative robots that help human members of the workforce complete tasks, according to the product website.
Company leaders will purchase the equipment on or around April 15, with it arriving by the end of the year, Town Manager Wade Watson said.
Ditech Inc. officials say 10 new jobs to pay about $500,000 in payroll will be created with the investment. This will add to the company’s current workforce of 136 employees, according to the documents.
The type of positions Ditech will add were not specified and company officials did not return requests for comment by deadline.
Ditech will not be required to pay any personal property taxes on the equipment this year, but the percentage of taxes owed will gradually increase over the 10-year period, until full taxes are due after year 10, according to the documents.
The business is located in Bartholomew County, but taxes generated from Ditech are distributed throughout the town. The personal property tax abatement will benefit not just Ditech, but the Edinburgh community, which will have additional employment opportunities, Watson said.
“They are an excellent community neighbor and currently employ 136 workers,” he said. “They pay property tax and purchase Edinburgh municipal utilities.”
