Grove City recently entered into a Job Growth Incentive Agreement that will keep a Welspun USA Inc. operation in the community.
In fact, the local operation of the world's fourth largest textile producer, with headquarters in India, is expanding its Gantz Road presence physically and in terms of personnel, according to city officials.
Council members signed off on the incentive arrangement June 15.
Under the terms of the agreement, the company, which is moving from a 100,000-square-foot facility to a 300,000-square-foot building, would receive full and then partial income tax abatement on the 25 to 30 new positions expected to be created as part of the expansion.
The city would continue to receive the full income tax on existing employees, according to development director Chuck Boso, who was credited by city administrator Philip D. Honsey with negotiating the deal.
Honsey pointed out that it is not only important for city officials to seek to generate new jobs, but also to work to maintain what exists.
"We are doing what we can to keep the company here," Honsey said of Welspun, which operates in 50 countries and has more than 20,000 employees, according to the conglomerate's Web site.
During the first two years of the seven-year agreement, Boso said Welspun USA would keep the income tax for all new employees.
Over the next five years of the life of the arrangement, income taxes generated by any additional hires would be split 50-50 between the city and the company, he said.
Grove City was competing with at least two other communities interested in being home to Welspun's expanded operations, according to Mayor Richard L. "Ike" Stage.
-- Kevin Parks