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MERRILLVILLE, Ind. (AP) — Officials say an Illinois manufacturer will open a factory in northwestern Indiana, where it plans to potentially hire hundreds of workers.

Merrillville Town Councilman Richard Hardaway tells The Times of Munster (http://bit.ly/n1YlFd ) that Modern Drop Forge will be coming the town following the council's approval of a 10-year tax abatement for the company in May. The newspaper reports the Blue Island, Ill.-based company expects to have about 240 jobs in Merrillville.

Gov. Mitch Daniels is scheduled to take part Tuesday in a formal announcement of the project in the town just south of Gary. Indiana economic officials have been trying to entice moves by Illinois companies following an increase this year in the Illinois corporate tax rate.

Modern Drop Forge offers custom forging, machinery and assembly services.

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