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Group Dekko growing in Avilla

July 16th, 2015

News Coverage:

Group Dekko growing

By Steve Garbacz
sgarbacz@kpcmedia.com | Posted: Thursday, July 16, 2015 10:32 am

AVILLA — A manufacturer had some options about where to install a new product line, including Mexico, but the company is staying committed to Avilla.

Group Dekko, on the northeast corner of Albion Street and S.R. 3, is investing about $1.2 million into a building expansion and new equipment at its plant. Avilla Town Council members agreed Wednesday to give the company a 10-year tax abatement on both the new building and equipment.

The new product line will allow Group Dekko to retain 24 current jobs and create 25 new positions.

It’s the second industrial expansion announced in Avilla this summer. In June, Wirco announced plans to purchase a vacant building in the town’s east side industrial park, nearly doubling its available floor space.

Group Dekko has multiple locations in the United States as well as one facility in Jaurez, Mexico, but adding the new equipment here made the most sense because the Avilla plant already is producing the same type of components, Group Dekko Plant Manager Bren Harris said.

“Our wish is to put it in Avilla. The product line is already being produced in Avilla,” Harris said. “We’re committed to this community. We’re committed to staying here.”

Group Dekko will add an 11,250-square-foot expansion to the west end of its building, costing about $520,000. The new equipment that will fill that space and require new workers will cost about $642,000.

Harris said construction could begin soon, and he hopes to be moved in and operating by December.

The Avilla plant produces two main types of components. One line produces office furniture pieces that are exported to Mexico. The other line manufactures “white goods,” components that are used in home appliances, with top-load washers being one major appliance for which the company produces parts, Harris said.

The 10-year tax abatement means property taxes will be phased in by 10 percent per year. Group Dekko will pay 10 percent of the tax on the new building and equipment in the first year, while paying 90 percent in the last year of the agreement. Tax abatements typically save companies about half the amount of taxes they would pay over the 10 years if not granted the incentive.

Town council President Paul Shepherd thanked Group Dekko for choosing to grow in Avilla.

“We’re very, very happy you picked Avilla,” Shepherd said.