GARY, Ind. — An Illinois steel company has finalized plans to move its operations to northwestern Indiana .

The state of Indiana announced Wednesday that Alliance Steel plans to invest $19.7 million in Gary, about 25 miles (40 kilometers) from its plant in Bedford Park, Illinois. The company is beginning renovations in Gary in early 2019 and could be operational there by January 2020.

Indiana Gov. Eric Holcomb says it's "an exciting step forward" for northwestern Indiana.

Alliance Steel's CEO Andy Gross says the region is "making all the right moves to recreate a very promising industrial area."

The company currently has about 100 workers and employment in Gary could reach 130 by 2023.

The Indiana Economic Development Corp. offered Alliance Steel more than $2.7 million in conditional tax credits. Gary offered additional incentives.