The Chelsea City Council got some good news Monday night — the currently idled Jaytek plant on Sibley Road is expected to be back in operation later this year.
Dawn Dayton, director of community relations, said the parent company, L and W Engineering does not intend to sell the plant, rather hire employees to reopen the plant to make assemblies for the auto industry.
According to the company’s website, “For 40 years, L and W has been a leading Tier I supplier in the automotive industry specializing in Metal Stampings, Welded Assemblies, Tubular Products, and Hot Stampings. ”
L and W continues to expand operations and currently has 17 facilities operating in four states, the website says.
She said a number of the former 5800 Sibley Road employees were moved to other plants, and mentioned facilities in Milan, Belleville, Britton and Dundee.
The City Council had asked for an update on the company’s plans for the currently vacant facility at 5800 Sibley Road, which was approved for an Industrial Facilities Exemption tax abatement through 2020, which allowed the company to renovate or expand facilities and receive a 50-percent reduction in real and personal property taxes.
Jaytec received a $1.53 million exemption for real property and $730,000 for personal property taxes. But with all IFT’s, there are stipulations that the company is expected to fulfill to remain eligible.
According to a letter to the city dated Jan. 20, 2014, the Sibley road plant was “idled in an effort to maximize resources and future development.”
At the time of the IFT, 113 positions were created but as of Jan. 16, 2013, the plant had been idle for a year, she said.
Dayton said she would keep the city updated on developments and she expected that the plant would be operational again in the third quarter of this calendar year.
