AUBURN, AL (WTVM) - The German based auto supplier Rausch & Pausch LP, also known as RAPA, will soon be opening its North American headquarters in Auburn.
The technology based company produces automotive valves and control blocks.
"This is a start, stop technology for Jeep and Zed-F transmissions, and what I mean by that is when you come to a stop your engine cuts off and then when you start again it cuts back on and it's a gas saving valve that has been in German cars for a while and they're bringing this technology to the United States," explains City of Auburn's Director of Economic Development, Phillip Dunlap.
Tuesday, the Auburn City Council approved a resolution giving tax abatements to RAPA in order for the company to purchase new equipment for its facility in Auburn Technology Park West.
"It's an incentive to help in the recruitment to Auburn and here to Alabama. It reduces a portion of their taxes for up to ten years, but it does not reduce the school taxes or the hospital taxes or the children's home," says Dunlap.
RAPA announced their decision to come to Auburn in December of 2012. Production is scheduled to ramp up this fall.
In the first phase, RAPA anticipates hiring 50 new employees over the next two years with a capital investment of over $7.8 million for new equipment in the company.
Over the next five years, the company plans to employ 105 employees with a total capital investment of $18 million.
"We work hard here to try to create jobs for people in Auburn and the surrounding area," says Dunlap, "So it's a positive bit of news for us."