HAMILTON — City Council agreed Wednesday to give Krupp Bilstein of America Inc. a tax break if the company expands its Hamilton facility.

        Krupp Bilstein, which assembles automotive shock absorbers at its plant on Berk Boulevard, is considering expanding at one of four sites — Hamilton, Tennessee, Mexico or Romania.

        The expansion would create 125 jobs at first.

        “That number could expand substantially in a short period of time,” said Hamilton City Manager Steve Sorrell.

        To try to induce the company to choose to expand in Hamilton, council voted unanimously Wednesday to authorize an earnings-tax credit on the new jobs.

        The tax break would give Krupp Bilstein a credit of about $40,000 a year for up to 10 years, said Tim Bigler, Hamilton's economic development director. There are now 110 employees at the Berk Boulevard facility.

        Hamilton has been struggling financially in recent years because of the departure of several large employers. The city has lost about 3,000 jobs in three years.

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