Food manufacturer Ingredion Inc. is planning to invest $110 million to expand its local operations, according to a tax abatement request filed with the Department of Metropolitan Development.
Chicago-based Ingredion, which makes starches, sweeteners, texturants and nutritionals, took over aging facilities on the south side of Indianapolis that were previously operated by National Starch and Chemical Co. after an acquisition in 2010.
The company wants to build a 17,500-square-foot building at its Raymond Street plant to house a fourth spray dryer and a 15,500-square-foot building at its Drover Street plant that would house a second fluid bed reactor, a specialized device to control the temperature of materials during processing.
Ingredion estimates it would spend about $18.35 million on the real estate improvements and $91.15 million on the spray dryer and fluid bed reactor.
Expanding and modernizing the plant would help the company retain 341 workers in Marion County making an average of $37.02 per hour, the DMD said.
The company is seeking an eight-year tax abatement on both the real estate and equipment investments.
The DMD estimated Ingredion would save almost $1.7 million, or 56.5 percent, on its real property taxes over the eight years while paying an estimated $1.3 million. That’s in addition to the $711,700 in taxes already paid annually on the property.
Following the abatement, Ingredion will be in line to pay an estimated $375,202 per year in new property taxes in addition to the $711,700 already being paid annually.
The eight-year personal property tax abatement is expected to save the company almost $4.8 million, or 61.6 percent. The company would still pay nearly $3 million in personal property taxes on the new equipment during that period plus an estimated $798,747 annually after the abatement ends.
The city’s Metropolitan Development Commission is set to hear Ingredion’s request for tax incentives July 1. Final approval could come July 15.
Ingredion is a Fortune 500 company that had sales of $5.7 billion in 2014. It employs more than 11,000 people at plants and research facilities around the world.