KENDALLVILLE - A New Haven company is moving its operation to Kendallville, bringing approximately 29 jobs and creating an additional 25 more jobs.

Arrotin Plastic Materials Inc. is purchasing the vacant Drive-Sol building at 301 W. Ohio St., and plans to start its plastics recycling operation in January.

Thursday, the Economic Development Steering Committee recommended two years of tax abatement on $1.205 million of real property, and five years of abatement on $950,000 in new manufacturing equipment, including shredders and extruders provided Arrotin representatives provide Mayor Suzanne Handshoe with corrections to the abatement application.

The recommendation goes to City Council Tuesday night for approval.

According to its tax abatement application, the 25 new jobs include four management or supervisory positions and five professional or technical positions paying $15 to $20 an hour, four skilled positions paying $12-$16 an hour, and 12 semi or unskilled positions paying $8-$10 an hour.

The San Bernadino, Calif.-based company purchases used plastic materials, recycles the plastic into pellets for re-sale to plastic manufacturers, according to Alex Arroyo, vice-president of Arrotin Plastic Materials of Indiana Inc. The company can also recycle paper and cardboard materials on site.

Arroyo said the company looked at several sites around northeast Indiana, but the Drive-Sol building that has been vacant for about two years fits its needs. "It has power which was a plus," he said. Handshoe said the Ohio Street's location close to U.S. 6 was also a plus because the company has a major contract in Chicago.

Company officials hope to develop contractual relationships with local manufacturers to purchase their recyclable plastic and cardboard.

Handshoe told EDSC members she toured the company's New Haven operation and was impressed by how much material its operation can recycle. "They can recycle just about anything plastic," she said.

No materials will be stored outside the Ohio Street plant. Everything must be inside to prevent contamination, said Arroyo.

The company plans to modify the warehouse floor to meet production needs and switching the sprinkler system to a dry fire retardant system.

The Drive-Sol building is eligible for two years of abatement because it has been vacant that long, said Handshoe.

A total of $34,910 will be abated on the real property and $56,461 on the new manufacturing equipment.