Zekelman Industries to add up to 150 manufacturing jobs at Nippon Shayro site

ROCHELLE - The developer behind Project Jackpot to revamp the Nippon Sharyo buildings and bring up to 150 jobs to the Sauk Valley is Zekelman Industries, the largest steel pipe and tube manufacturer across the country.

City officials recently announced the long-awaited development for the Nippon Sharyo buildings at the ProLogis industrial park off of Interstates 88 and 39, and Zekelman Industries is investing at least $130 million and creating 100 to 150 jobs at the site.

Lee-Ogle Enterprise Zone incentives agreed to by taxing bodies across the region helped bring the project to life.

The City of Rochelle expects the project to foster further industrial and commercial development in the community, according to a news release.

“The City of Rochelle is pleased to welcome Zekelman Industries to our community,” Rochelle Mayor John Bearrows said. “The City of Rochelle was only able to attract this type of development because of our ongoing investment in our utility infrastructure.”

Zekelman is expected to begin operations in the fall.

“This announcement was made possible through the efforts of the mayor, city council, and city staff over almost 2 years,” City Manager Jeff Fiegenschuh said. “This project demonstrates that Rochelle is an economic engine for the region and that our community is an attractive location for families.”

Nippon Sharyo, a Japanese rail car maker, opened in 2012 and closed in 2018, after incurring huge losses after it was unable to complete a high-tech, bi-level rail car project. The plant was highly specialized for making about 120 of the rail cars annually for North American transportation agencies.

Counties and municipalities in the Lee-Ogle Enterprise Zone agreed to create a new high-impact incentive tier to accommodate the project.

The enterprise zone allows for six years of property tax abatements of 50% if a company meets requirements for new capital investments and job creation within the zone, and the new super tier allows for a 10-year extension of the 50% abatement for developments of at least $100 million that would add at least 125 new jobs.

Development would need to happen within two years, and the company must maintain 95% of the jobs created.

The two Nippon buildings combined have more than 800,000 square feet of industrial and office space on 57 acres. They were sold 3 years ago for $18 million to a buyer under the name of 1600 Ritchie Court LLC in Delaware, which is the address for the site.