LEBANON, Ind. — FESTOOL, a Germany company that invented the hand-held orbital sander, is moving its U.S. headquarters from California to Lebanon.

The company is buying 10 acres in Lebanon Business Park from Duke Realty, with an initial investment of $3 million including a building, machinery and other equipment, Kent Frandsen, an attorney representing Duke, told the Lebanon City Council .

Sites in five states were considered before Lebanon was chosen, Brian Goldthorpe, CFO of the company’s U.S. operations, told the council. Once the firm narrowed the state list to Indiana, it examined sites in 10 other counties, he said.

The “very business friendly” atmosphere in Indiana and Lebanon helped the company choose to move here from Goleta, in southern California, Goldthorpe said.

Goldthorpe said FESTOOL was impressed with the Lebanon Business Park, Duke Realty’s and the community’s involvement

The council unanimously approved the first step in granting the company a 10-year tax abatement. If other approvals follow on schedule, FESTOOL will begin construction of a $2.225 million, 25,000-square-feet building in Lebanon Business Park this June.

FESTOOL plans to have 27 full-time employees in two years, Frandsen said.

Boone County Economic Development Corp. Executive Director Kristie McKillip said nine to 10 of those will be highly-skilled professionals. Most of those will earn $25 or more per hour. But the average wage for other workers is $14 excluding the value of benefits, McKillip said, “well above” the average salary of other business park companies.

“We’ve been running neck-and-neck with another community in central Indiana” to win FESTOOL, McKillip said. “The EDC board supports maximum abatement for this project.”

The Indiana Economic Development Commission “is committed to quite a bit of incentives” to offer FESTOOL with Lebanon’s approval of tax abatement, she said.

Goldthorpe said FESTOOL hopes to double its building size in five years, adding some assembly of products. It hopes to start light production of its power tools with the next 10 years.

Jay Archer, senior vice president of Duke Realty’s Indiana Industrial Group, said landing FESTOOL was considered so important Duke did not require absolute rights to construct its building. “We didn’t want to take the risk of losing this project for Lebanon Business Park,” Archer said. “I think it’s that important.”

A sister company, which was not identified, is also considering a move to Lebanon, Archer said.

That company’s move “is not just a thought,” Archer said. “It’s going to be a huge plus for Lebanon and central Indiana.”

FESTOOL was founded in 1925 in Esslingen, Germany. Originally named Festo for co-founders Albert Fezer and Gottlieb Stoll, it built the first transportable chain saw, according to company literature.



Rod Rose writes for The Lebanon (Ind.) Reporter.