Issue date: 3/8/10 Section: News

Lear Corporation announced this week plans to expand its Hammond plant, which would create 285 new jobs.

Lear will invest $2.2 million on the expansion, creating jobs for local contractors and will hire the 285 newly-opened positions immediately. Director of Media Relations for the Indiana Economic Development Corporation (IEDC) Blair West confirmed the $1.7 million in tax credits Lear will be rewarded with.

"The incentives we offer are performance-based; they have to meet some expectations to receive the benefit," West said. "Another factor we consider is the capital investment."

West also explained the track record of the IEDC, "Our incentives usually have a two-year turnaround. Through corporate and income taxes, the tax incentive is recuperated in a very short time."

According to the IEDC, Indiana is not typically competitive in trying to offer incentives to companies considering relocated. This is due to a low state budget, among several other factors. States such as California and Illinois are much better able to lure companies in. One benefit Northwest Indiana has over Chicagoland in Illinois is a lesser cost of business.

Lear's Hammond plant will be used to manufacture the seats for the new line of Ford Explorers put together in the Ford Chicago Assembly plant. Northwest Indiana was chosen as the location of this Lear plant in 1994 due to this proximity.

Lear Vice President Mel Stephens named the Chicago plant as the reason for the expansion in Hammond. Lear has the exclusive contract for seats in the new line of vehicles.

"We're not sure how long Ford will run the line," Stephens said, "And the plant is dependent on the contract we have with Ford." Stephens expressed confidence the plant will stay open for the foreseeable future.

West is happy with how things are going, "The economic climate here is good. We're able to recoup the tax credit in two years and it brings jobs to the state. It's a win for everyone involved."

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