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Monday, September 1, 2014

Kerkau Manufacturing Expands Facilities, Adds Jobs

kerkauKerkau Manufacturing recently received a tax exemption, allowing it to expand and add jobs in its three Bay City, Mich., facilities.

The Bay City Commission on Monday approved Kerkau’s application for a 12-year industrial facilities tax exemption of $2 million, clearing remaining barriers for the custom components machining company to expand its equipment capabilities, invest in property improvements, and hire additional workers. The company has received 13 tax abatements in past years for investments up to $7.5 million, Michigan Live reported.

Kerkau will invest $248,493 in property developments, including improved heating and ventilation, and $1.7 million in equipment purchases and improvements. It will also add eight workers, increasing its payroll to a total of 133 employees.

These moves are estimated to generate new tax revenue up to $557,272 for Bay City coffers over the 12 year period, according to estimates from the city. The application was approved by Bay Future, a city organization that aims to help local companies solve business challenges and stay in the local area.

“With high-quality products that supply the automotive, oil, gas, and defense industries, Kerkau reflects the excellent reputation that manufacturers in our area are known for throughout Michigan and the world,” Bay Future’s economic development specialist, Trevor Keyes, told Michigan Live.

Brian Lane

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