Dec. 1—Altec, one of St. Joseph's largest employers, will invest more than $10 million to upgrade its production facility on Riverside Road.

The company will spend up to $8.6 million on new equipment, including robotics, in the fiberglass operation used in the production of aerial boom devices. Another $2 million will involve a building expansion to accommodate the new equipment.

"It enhances or increases the efficiency as well as their production output through this particular project," said Brad Lau, vice president of economic development for the St. Joseph Chamber of Commerce.

Last Monday, the St. Joseph City Council authorized Chapter 100 bonds that allow Altec to claim tax breaks on its new equipment, starting with a 75% abatement for two years. The tax reduction goes to 50% and then 25% over the next eight years.

Authorized under state law, Chapter 100 is a financing mechanism that allows a government entity to hold title to personal property and then lease it back to a company. Municipal ownership allows the equipment to become exempt from taxes, although companies still pay the principal and interest on the bonds and often make a payment in lieu of taxes to local government.

Other St. Joseph companies, including Altec, have used Chapter 100 financing on expansions in the past.

"Altec had a major project probably four or five years ago where they added a huge facility," Lau said. "It's key to overall economic growth and retention in St. Joseph."

Lau said the most recent Altec expansion is only expected to add two or three jobs initially, but the investment further solidifies the company's presence and leads to more employment growth in the future.

Altec, headquartered in Alabama, produces aerial devices, digger derricks and truck bodies for the utility, telecommunications and contractor markets. The company doesn't disclose how many employees work at its production facility at 2106 S. Riverside Road, but Altec has become an anchor of the city's manufacturing economy.

"I would say that they are one of the larger employers in St. Joseph and obviously critical not only from the standpoint of number of jobs that they have at that particular facility but also they use a lot of machine shops and other aspects of manufacturing in St. Joseph," Lau said. "So they have kind of a multiplier effect in the economy as well."

Greg Kozol can be reached at greg.kozol@newspressnow.com. Follow him on Twitter: @NPNowKozol.