Iron company to build plant, create 100 jobs

REYNOLDS, Ind. (WLFI) - An iron-recycling company is investing hundreds of millions to build a new plant in White County, creating 100 new jobs and bringing even greener industry to Indiana.

Magnetation, LLC, which recycles iron waste to produce valuable iron ore concentrate, announced plans Tuesday to invest up to $350 million to build a new iron-ore pellet plant in Reynolds, Ind.

The new facility, which will create those 100 jobs by 2015, will also produce high-quality iron-ore pellets, a critical raw material in the steelmaking process.

The company expects to break ground on the plant early in 2013.

"Magnetation joins a growing list of companies that have discovered what we Hoosiers have always known: Indiana is the best state to do business in the country," Indiana Governor Mitch Daniels said. "We are happy to welcome our new neighbors to Reynolds and thank them for the multi-million dollar investment and the many jobs that come with their decision."

Magnetation will transport iron-ore concentrate from its mineral recovery operations located in Minnesota to its new plant, which is expected to be up and running by early 2015.

"With convenient access to major railways and highways, Reynolds is an outstanding location for the company's new pellet plant," Chief executive officer of Magnetation Larry Lehtinen said. "We thank our local and state officials in Indiana for their ongoing support of our company, and we look forward to joining the Reynolds community in the very near future."

The Indiana Economic Development Corporation offered MagPellet, LLC, a part of Magnetation, up to $1.5 million in conditional tax credits and up to $200,000 in training grants based on the company's job creation plans.

These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives.

The Indiana Department of Transportation will also assist the community with improving rail service to the site.

White County offered funds using revenues generated from the issuance of a tax increment financing (TIF) bond.

NIPSCO has also offered the company $23 million in additional energy and infrastructure incentives as part of its continued efforts to support local economic development.

"This announcement is a huge shot in the arm for the local economy in Reynolds and White County," President of the White County commissioners John Heimlich said. "We are pleased that Magnetation has chosen to locate in the former VeraSun facility and look forward to a long and prosperous relationship with the company."

Find out more about Magnetation at its website.