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Indiana 100: Manufacturing a Mixed Bag for Northern Third of Indiana
Monday, June 23, 2008 3:55 AM


By Maurer, Katie

There were plenty of economic development deals in 2007, but most were concentrated in the southern and central parts of the state, leaving northern Indiana out in the cold. With the exception of the northwest region, economic activity in the northern third of the state was down last year as the area was unable to keep pace with the nearly 4,900 jobs promised in 2006.

The final tally of new jobs for 2007 was 4,420, according to figures from the Indiana Economic Development Corp.

Losses in the manufacturing sector hit both the northeast and north-central regions, as two large employers pulled up stakes and lefts hundreds of workers in the lurch. In northwest Indiana, however, several manufacturers announced expansions or new operations.

Overall, the region remained busy, if not overwhelmed, with new deals and expansions in life sciences, and technology.

Northeast region

A number of modest-sized deals contributed to the northeast Indiana economy, though economic development officials admit 2007 was not a banner year.

"Overall, it was not a strong year for us," said John Sampson, president and CEO of the Northeast Indiana Regional Partnership, a privately funded group promoting economic development in an 11- county region.

"We did a good job of keeping ourselves busy, but we didn't close as many deals as we would have liked," he said.

One problem, Sampson noted, was the lack of available sites where companies can choose to locate.

The worst news for the region, however, came in the form of a departure. Last fall, about 800 workers lost their jobs with the closure of the GDX Automotive plant in Wabash County. GDX owner Cerberus Capital Management confirmed long-rumored plans to mothball the auto-parts facility in October.

"It was a devastating blow to that community," said Brook Steed, IEDC's regional director for the northeast region.

GDX was the county's second-largest employer and a mainstay of the local economy for 70 years. In 2005, the company had received an incentive package from state and local agencies to stay put. But declining orders from automakers sealed its fate.

Although there was no one large deal to offset the blow from GDX, the region did benefit from several new projects and expansions promising $750 million in investment over the next several years.

Leading the way were two ethanol projects in Wabash County. In July, Wabash AgriProducts Inc. announced it would build a $200 million biofuels plant in southern Wabash County. The facility is expected to create 45 new jobs and produce 88 million gallons of ethanol and 300,000 tons of livestock feed a year.

Meanwhile, Sioux

Falls, S.D.-based Poet Biorefining, the largest dry mill ethanol producer in the country, broke ground in July on a $130 million facility near North Manchester.

When it's up and running later this year, the plant will produce 65 million gallons of ethanol and 178,000 tons of feed.




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