Anniston council approves abatement that will mean loss of jobs

The Anniston City Council approved tax breaks Monday for North American Bus Industries  to help with a $13 million expansion project.

The Anniston City Council approved the 10-year sales, use and property tax abatement during its Monday meeting. The expansion, which is underway, will not create new jobs but will allow the heavy-duty transit bus manufacturer to build a new model.

Canada-based bus maker New Flyer, which bought NABI last year, announced in June that it will phase out production of the Anniston plant's current two bus models and produce a different model there instead. The change is part of a company-wide strategy to produce only a single bus design to improve efficiency. NABI has been adding more equipment and restructuring its production line to accommodate the new model.

According to city finance department figures, the city will lose $393,695 in sales, use and property taxes over the next 10 years due to the abatement.

New Flyer officials have said they will invest $20 million in the company-wide strategy, $13 million of which is for the expansion at NABI. However, New Flyer also announced in June that the changes will result in fewer employees needed at NABI. The company will reduce its workforce over the next two years mainly through retirements, attrition and redeployment.

NABI currently has 703 employees and produces approximately 600 buses per year.