3/14/2016
HEADLINES
Rocknel Fastener to Expand With City Help

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Rocknel Fastener will begin construction on a $2.1 million expansion after City of Rockford approved funding to extend a street so trucks can access the fastener manufacturer’s warehouse, the Rockford Register-Star reported.

The Rockford City Council voted to use $183,000 from the Rockford Global Trade Park Tax Inrement Financing District for a temporary extension of the road Logistics Parkway – located between Illinois 251 on the east and Chicago Rockford International Airport on the west.

A TIF district is a financial tool that municipalities use to generate revenue for economic development projects. As development within the special zone blooms, the city captures the increased property tax revenue, or tax increment, and spends it on redevelopment projects.

The city plans to apply for a Illinois Department of Transportation grant to pay for a permanent $3.8 million road expansion.

Mark Williams, city economic development manager, told reporter Brian Leaf that  the Rocknel expansion would generate about $229,000 in additional taxes over the next decade to cover the city’s investment into the temporary road.

Ed Vaughn, Rocknel’s director of operations, said the company employs 188 and will add 10 or more employees with the expansion. Vaughn said the company wants to begin construction by the end of March.

Founded in 1989 as a joint venture between Elco Industries and Nagoya Screw Manufacturing Co. Ltd. to do business with Japanese automotive firms setting up North American assembly plants. Nagoya helped Rocknel break into the market.  

Since 1998 Rocknel has been a subsidiary of Meira Inc. of Japan, which manufactures automotive and aerospace fasteners.

Rocknel’s customers are mainly Japanese automotive plants,” Vaughn told the RR-S. ”There is a lot of growth there and it drives our business.”

Vaughn said that construction will cost $2.1 million, but the company’s total investment will be $7.7 million. The expansion includes a new metal plating line, which will require new equipment.

Todd Cagnoni, the city’s director of community and economic development, said Rocknel plans to expand again within five years. Web: rocknel.com