News: North America Fuel Systems Remanufacturing says Kentwood tax abatements help it stay in business
North America Fuel Systems Remanufacturing LLC needs to launch new products to stay in business, company representatives say.
Tuesday, 1st December 2009
The Grand Rapids Press reports that the company remanufactures diesel injectors and injection pumps used in heavy-duty fuel systems for equipment and vehicles. These are sold as aftermarket replacement parts. 75 percent of the company's sales are related to a product that has been out of production since 2006. So, the company recently sought tax abatements as part of its efforts to launch new products as the demand for the older parts dwindles. The City Commission approved an eight-year tax abatement on US$1.35 million in new equipment that will help North American Fuel create two product lines. Company representatives said they don't expect the new lines to add workers but hope they will be able to retain the 130 employees they have. North America Fuel Systems had sales of $27 million in 2009. Rasch said sales are expected to drop to $8 million by 2017 with the current production line. With the new lines added, the company hopes to build sales back up to more than $20 million, he said.