Aisin USA Mfg. Inc. has chosen Seymour for a $100 million investment to expand its manufacturing facilities and add 100 new jobs here during the next four years.
The Japanese-owned company announced its plans Tuesday morning but provided a hint of the news Monday night during a Seymour City Council meeting.
At that meeting, council members approved a tax abatement on the company’s first $15 million of planned investment, including real estate improvements and new manufacturing, research and development and logistics equipment.
The company manufactures and supplies automotive components and systems, including door frame components, latching systems and seating and trim molding for vehicles such as the Honda Odyssey, Chevrolet Traverse, Toyota Highlander, Toyota Camry, Toyota Avalon, Toyota Corolla, Toyota RAV4 and Lexus models.
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The expansion and investment are needed to accommodate design changes being incorporated by its customers, Aisin officials said.
Aisin employs more than 1,700 full-time workers in Seymour and is the county’s largest industrial employer. Hiring for additional manufacturing positions is expected to begin in 2017, officials said.
The company operates two manufacturing plants and global office headquarters in the Eastside Industrial Park. Investments are being made at both Plant 1 on East Fourth Street and Plant 2 on Burkart Boulevard.
Aisin USA in Seymour was the company’s first North American manufacturing facility for its parent company, Aisin Seiki in Japan. It also operates Aisin Drivetrain Inc. and Aisin Chemical Indiana LLC in Crothersville and other operations in Tell City, Terre Haute, Franklin and Rushville, employing 2,900 Hoosiers.
Seymour Mayor Craig Luedeman said he is thrilled by the company’s success and commitment to Seymour and Jackson County and what it means for the future.
“For nearly 30 years, Aisin USA has been one of our most important companies, and we obviously are pleased that they continue to invest here,” Luedeman said. “This is great news, and we pledge our support to them.”
Jeff Nordman, executive vice president of Aisin USA Mfg. Inc., said the company wouldn’t be able to grow if it wasn’t for the support of the city and the state, which are providing incentives, including local property tax abatement and conditional employment tax credits.
“Aisin is excited to expand and continue its operations in Seymour, Indiana,” Nordman said. “We have enjoyed a long and mutually beneficial relationship with Seymour and Jackson County.”
The Indiana Economic Development Corp. offered Aisin USA up to $500,000 in conditional tax credits based on the company’s job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives, according to a news release.
The city of Seymour approved property tax abatement for the first phase of the project Monday night at the request of Jackson County Industrial Development Corp. Abatement allows the company to phase in paying taxes on the expansion and new equipment over the next 10 years.
Jim Plump, executive director of JCIDC, said as Aisin USA gets closer to its 30th anniversary next year, it’s encouraging and rewarding to see its continued growth and success.
“It’s been a great relationship,” Plump said of Aisin and the city.
Over three decades, the company has supported local United Way programs, including Day of Caring, sponsored robotics engineering summer camps for middle and high school students and contributed funds to the March of Dimes walk and the Leukemia and Lymphoma Society walk, both in Seymour. Aisin employees also organize an annual 5K, with proceeds this year going to help build a county dog shelter.
The company’s expansion will be phased in over a period of four years, Plump said.
Investments in the first phase at Plant 1 include $2.78 million to expand the existing facility; $9.33 million in new manufacturing equipment; $154,000 in research and development; and $134,000 in logistics.
“As a result of this expansion, the company will add 10 new jobs and retain their current number of 1,308 employees at Plant 1,” Plump said.
The first phase is expected to begin Sept. 1 and be completed by the end of the year.
At Plant 2, investments include $50,000 for interior renovations and $3.23 million in new manufacturing equipment. Combined, the company anticipates spending $12.85 million in equipment and $2.83 million in real estate improvements for the first phase.
Since 2005, Aisin has invested more than $265 million in its Seymour operations.
Last September, Gov. Mike Pence met with executives of Aisin Seiki during a jobs and economic development mission to Japan.
Indiana is home to more than 260 Japan-owned business facilities that support more than 53,000 Hoosier jobs. Among all states, Indiana has the largest amount of Japanese investment per capita and is the only state with three Japanese automotive original equipment manufacturer companies — Subaru, Toyota and Honda.
“Indiana is home to the largest concentration of manufacturing jobs in the nation because we are a state that works,” Pence said in a news release. “Manufacturers, both large and small, are growing across the state, and we are proud to support companies like Aisin USA Manufacturing as we work together to ensure quality employment for all Hoosiers.”
The Aisin USA Mfg. Inc. project
First phase at Plant 1
$2.78 million to expand existing facility
$9.33 million in new manufacturing equipment
$154,000 in research and development
$134,000 in logistics
First phase at Plant 2
$50,000 for interior renovations
$3.23 million for new manufacturing equipment
Project start date for first phase: Sept. 1
Project end date: End of 2016
Number of new jobs with first phase: 10
Future phases will bring an estimated 100 new jobs by 2018 and total investment to nearly $100 million in four years.