In hard-hit Elkhart, automotive supply distributor Kem Krest today said it will expand its operations and create more than 50 new jobs by 2012.

The 30-year-old company plans to invest $3.3 million to move its headquarters to an existing 150,000 square-foot facility.

Kem Krest employs more than 50 and plans to begin hiring additional warehouse, operations and administrative associates over the next 12 months.

“We began an extensive process of fine-tuning our business model, recruiting great people and developing a sustainable infrastructure several years ago which has now put us in a great position in our industry,” Amish Shah, president of Kem Krest, said in a statement. “We found Elkhart’s strong work force and low cost of doing business to be the main drivers to our decision, but in the back of our mind we knew leaving Elkhart would not be good for Elkhart, the city where my business partner and I were born. Elkhart will rebound, and we want to be here to help it.”

Elkhart, for months, has had one of the highest unemployment rates in the nation.

Indiana Economic Development Corp., a state board of 12 people led by Gov. Mitch Daniels, offered Kem Krest up to $140,000 in performance-based tax credits and $50,000 in training grants based on the company’s job creation plans. The city of Elkhart has preliminarily approved additional property tax phase-in with the support of the Economic Development Corp. of Elkhart County.

“Growth doesn’t happen by accident,” said Daniels said in a statement. “It takes excellent leadership, a great product and a business climate which promotes success and growth. Today, we celebrate Kem Krest and more than a dozen other companies this year that will increase their size and investment in Elkhart County and I can’t think of better news for the work force.”