New plant in Elgin will create 355 new jobs

A producer of wind turbine gear drivers is planning to build a new plant in Elgin, creating 355 new jobs.

City leaders and officials at Georgia-based Siemens Energy and Automation announced Monday plans for a $20 million, 170,000-square-foot plant on Elgin's far west side.

"This is huge on a couple of levels. It's an endorsement of the city. They've been here and they're pleased with us," said Elgin Mayor Ed Schock, noting other towns in Iowa offered more financial incentives to expand there.

He said Siemens' decision to expand in Elgin shows the company is pleased with the city's transportation network and services and availability of workers. Schock also stressed that sustainable energy like windmill turbines will grow in popularity as the price of fossil fuels rises.

"Those are the industries of the future," he said.

The company already operates a facility off Route 31 in Elgin that employs 150.

The new plant, slated for completion in March, eventually could be expanded to 330,000 square feet.

"Siemens is committed to providing technologies that promote energy efficiency and reduce costs," said Anne Cooney, vice president of the power conversion division for Siemens, in a prepared statement. "Combined with the expertise and product knowledge we have in Elgin, the new facility will help Siemens increase production of our mechanical drivers to help our customers meet the growing demand for sustainable resources."

Elgin and state officials offered nearly $1 million in possible incentives and grants for Siemens to expand in Elgin.

Siemens is eligible for up to $635,500 in sales tax rebates on construction materials it buys from Illinois companies to erect the new plant.

The city and state plan to provide $325,000 in grants, including $1,000 from Elgin for each of the 95 new jobs that will pay more than $40,000.

Municipalities offering private businesses incentives in the form of tax credits, grants or rebates is a common practice.

"This is the way business is done in 2008," said Jerry Deering, the city's community development director. "Over the last four, five years, the city has added some 8 million square feet of new commercial and industrial (space). That's huge."

A groundbreaking ceremony is planned for Wednesday.