Swiss high-tech company coming to Elgin

Unlike companies threatening to move out of state after the recent tax increase, Bystronic Inc., a major machine toolmaker, will relocate its North American headquarters from New York to Elgin come summer.

Bob St. Aubin, president of Bystronic, helped to bring another machine toolmaker to Elgin about two years ago as an employee of Mazak Corp. The initial move went so well, Bystronic hired him to lead its own Elgin transition.

St. Aubin said the tax increase came too late in the planning stages of Bystronic’s relocation to be a deal-breaker. Plus, he is comforted by word the tax increase is only short term.

“We have confidence in Illinois,” St. Aubin said.

About 55 percent of Bystronic’s customer base is within a 50-mile radius of Chicago. Combined with its proximity to O’Hare, Elgin became an ideal spot for the company’s new headquarters.

“It makes more sense to us than being in New York, way out in left field,” St. Aubin said.

The Switzerland-based company will move into a built-to-suit marketing, sales and training center on Airport Road in Elgin. The training space will replace a facility now in Vernon Hills and will likely create 1,500 to 2,000 hotel night stays per year as customers visit Elgin to learn how to manage the new equipment.

Michael O’Kelley, Vice President of Economic Development with the Elgin Development Group, a division of the Elgin Area Chamber, called having the two machining companies in the same city economic development clustering.

“Then other allied businesses will come that are suppliers to or vendors from or customers of these two companies,” O’Kelley said.

The goal is for continued expansion until the companies bring all parts of their businesses here, including production. The machines Bystronic markets include high-tech laser and waterjet cutting systems, which produce clean cuts in metals and other sheet materials.

“If you sell enough of these things, then you can start bringing manufacturing here,” O’Kelley said. “That’s what we look to do.”

In the meantime, Bystronic will hire about 30 employees in the first year, most of whom will need to be highly skilled.

Bystronic and Northern Builders Inc. signed contracts Friday before a groundbreaking ceremony. Northern Builders will rehab an existing building for the company’s use. Now Bystronic is awaiting council approval of economic incentive agreements that are still under negotiation.

Assistant City Manager Rick Kozal said the agreement is modeled after those for other multinational corporations that have come to Elgin.