KEB America, a company that manufactures automation products, announced this week the start of an 80,000-square-foot building expansion of its U.S. headquarters in Shakopee.
The expansion of the facility will increase machining capacity and storage space to meet the growing demand of automation products in the country, a news release from the company said.
The Shakopee City Council unanimously approved a $289,000 tax abatement to help KEB America expand at a July meeting. The agreement is contingent upon the company maintaining its 98 full-time jobs and adding 34 jobs in five years.
“This is exciting because we haven’t done one of these in a long time,” Shakopee Planning and Development Director Michael Kerski said. “This is a company locally that makes very high-tech gear.”
The expansion will bring the facility to 150,000 square feet and is expected to be completed in the second quarter of 2020, the release said.
“We are excited to announce the new addition which solidifies our strong commitment to North American customers from coast to coast and to our local community,” KEB America president Andy Delius said. “The new space will enable us to meet the strong customer demand more effectively and expand our current product offering for the North American market.”
KEB America moved to Shakopee in 2005 and is a world leader in technology, Kerski said. The city will cap the tax abatement at $289,000 over nine years.