Factories and Manufacturers and Calumet Specialty Products and Environment and Government & Economic Development and Economic Development and Manufacturing & Technology

City commission set to approve refinery plans

November 3, 2010

The Metropolitan Development Commission is expected Wednesday to approve a waste-management company’s plans to build its first used oil re-refinery, on West 10th Street in Indianapolis.

Heritage-Crystal Clean Inc., which has ties to locally based Calumet Specialty Products Partners LP, said it will invest $40 million and create 55 jobs by 2013. The number of jobs listed in an MDC report has been lowered from the 75 originally announced in July by the Indiana Economic Development Corp.

The IEDC offered Heritage Crystal-Clean up to $550,000 in performance-based tax credits based on the company's job-creation plans. Up to an additional $100,000 will be made available to the city of Indianapolis for infrastructure improvements from the state's Industrial Development Grant Fund. The city of Indianapolis has granted Heritage Crystal a $2.3 million property-tax abatement and $150,000 for additional infrastructure assistance at the request of Develop Indy.

Heritage Crystal estimates the new hires will earn $20.08 an hour. The project also will help retain 40 employees at a wage of $15.60 an hour.

Heritage-Crystal is set to build the refinery on property at its current location, 3970 W. 10th St., where it operates an industrial chemicals and hazardous-waste services facility.

Heritage-Crystal is based in Elgin, Ill., but has its roots in Indianapolis. Its major shareholders are Heritage Group and Fred Fehsenfeld Jr., whose family started Calumet Specialty Products and took it public in 2005. Organized in Indiana in 1999, Heritage Crystal has been expanding the parts-cleaning and used-oil-recycling business started by its predecessor about 30 years ago.

The company provides services for parts cleaning, containerized waste management, used oil collection and vacuum truck services to customers in the automotive service and manufacturing industries. It has 500 employees and operates 62 branches in the Midwest and eastern states.

Heritage-Crystal expects to start operating the new re-refinery at partial capacity in 2012 and is in the process of hiring oil route drivers, plant operators, and maintenance and supervisory personnel, according to the IEDC.
 

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