Precision manufacturer plans $13 million expansion in Elk Grove Village

An Elk Grove Village company plans to spend $13 million to expand and add equipment lines for its growing precision manufacturing business serving the aerospace and defense industries.

Magnetic Inspection Laboratory already operates within three buildings on Greenleaf Avenue - at 1225, 1401 and 1455 - but is now purchasing the 40,000-square-foot building at 1355 Greenleaf Ave., where it plans to ramp up its metal finishing, coating and nondestructive testing and welding businesses.

Company officials said the property is desirable based on its proximity, and they expect it to work with the other properties on the street. They also have plans to eventually move into the building at 1335 Greenleaf to complete their expansion on the block.

For now, the firm plans to purchase the building currently occupied by Ability Metal Co. for $2.2 million, make $1.3 million in property improvements, and spend another $8 million to $10 million on the installation of new process lines, according to a project description provided to village officials.

Renovations to the 48-year-old building are expected to include tuckpointing and refurbishing of the facade; refinishing the east side parking lot and paving a new one on the west with stormwater detention; changes to the dock and drive aprons; the interior build out of offices, restrooms and lunchroom; asbestos remediation; upgrades to energy efficient lighting; and landscaping enhancements.

The business started in 1942 as a one-man operation, doing magnetic particle examinations on parts for the U.S. government. The company has been in Elk Grove since 1988, and today has 260 employees and more than 10,000 customers worldwide. With the expansion, there are plans to hire another 25 to 50 employees, officials said.

Elk Grove's village board last month endorsed the company's Cook County Class 6B property tax abatement application, which is still pending approval by county commissioners. The incentive would allow the 80,000-square-foot site to be assessed at lower levels over a dozen years: at 10% of market value for the first decade, then 15% in the 11th year and 20% in the 12th year. Industrial property is normally assessed at 25%.

In a letter to village officials, the company's lawyer wrote that the assistance and savings from the tax break is needed to complete the expansion, amid unforeseen circumstances and financial troubles posed by the pandemic.