The announcement that Kingsford Broach & Tool Inc. is building a new manufacturing facility is good news for Kingsford and Dickinson County.
The new building will accommodate expansion of product lines, and 10 more workers could be added in the next five to 10 years, officials said.
It's encouraging when an existing manufacturing business chooses to stay here, and adding employment helps the economic stability of the entire area.
Kingsford City Council has approved selling 6.5 acres of city-owned land to Kingsford Broach & Tool for $13,000.
The property is at the corner of Knudsen drive and Maule Drive in the Lodal Park area of Kingsford.
The project announced in June 2013 is to include a 31,200 square foot facility consisting of 26,600 square feet of manufacturing space; 4,600 square feet of office space; and a paved parking lot for approximately 35 to 40 vehicles.
The estimated $2.5 million cost includes $1 million in new equipment, according to Mark Schultz, Kingsford Broach & Tool president. At the time the project was proposed, Schultz said the company employed 34 manufacturing workers and nine office employees and hoped to add 10 more workers in the next five to 10 years.
"We're looking at breaking ground in the spring," Schultz said.
"We're happy that they're looking to stay in the city of Kingsford," said Tony Edlebeck, Kingsford city manager.
Apart from an extension of electrical power - which will be paid by the city - utilities are in place, Edlebeck said this week.
Under a state- and city-approved Industrial Facilities Tax (IFT) exemption, the company is eligible for a 50 percent property tax reduction for up to 12 years.
Kingsford Broach & Tool Inc. is now housed at 850 East Blvd. in Kingsford. That site in the former Ford Motor Co. complex is approaching the end of its useful life and there is no room to expand.
The new building will be designed for streamlined production and an expansion of product lines.
Kingsford Broach and Tool Inc., an ISO 9001 certified manufacturer, specializes in round, flat, form, keyway, carbide, involute spline and serration broaches. The company offers complete engineering services utilizing state of the art CAD systems, as well as on-site troubleshooting and diagnostics.
Established in 1968, the company also offers repair, reconditioning and sharpening services to its customers.
Kingsford Broach & Tool and the city of Kingsford are to be congratulated for making this new facility a reality.