CROTHERSVILLE
Over a three year-period, a Crothersville industry plans to invest between $14 million and $17.5 million.
And by the end of this year, Aisin Drivetrain Inc. plans to add more than 40 jobs.
During Tuesday night’s Crothersville Town Council meeting, the company at 1001 Industrial Way received unanimous approval for a 10-year tax abatement supporting the new investment.
The company requested the first phase of the abatement, which officials believe will be around $7 million in the first year, said Jim Plump, executive director of Jackson County Industrial Development Corp. He spoke on behalf of the industry, a Japan-owned manufacturer of automotive components and systems such as industrial transmissions, commercial transmissions and power steering columns.
Aisin Drivetrain will approach the council the next two years to approve abatement on whatever amount it plans to spend, Plump said.
“Some communities are OK with saying, ‘OK, let’s go ahead and take the entire project and roll it in the first year and apply for abatement,'” he said. “It becomes problematic as to when the investment is actually made and when the assessment begins on that first year, on the second year, and so obviously, there is confidence and trust from the company with the town council to come in and request just the first year.
“We have assured them that we’ve always had, as you all know, a great relationship with the council, and we don’t think that should be any issue moving forward because this is just Phase 1 of a three-year project,” Plump said to the five-member council.
The company, which was founded Oct. 1, 1996, and is a subsidiary of Kariya, Japan-headquartered Aisin Seiki Co., plans to renovate and purchase new equipment in order to accommodate design changes for steering columns and other automotive components being incorporated by its customers.
The company will supply parts for vehicles such as the Toyota Avalon and Lexus ES and plans to begin work on upgrades later this month.
Plump said Aisin Drivetrain estimates the more than 40 employees that will be hired will add salaries of $1.9 million. That will enable the industry to retain its current number of 368 employees, who have combined salaries of more than $17.9 million, he said.
Indiana Economic Development Corp. offered Aisin Drivetrain up to $425,000 in conditional tax credits based on the company’s job creation plans. The incentives are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The town will consider additional incentives at the request of JCIDC.
Council President Danieta Foster said it is great to hear about Aisin Drivetrain’s investment.
“The town of Crothersville welcomes any growth in industry and is happy to have Aisin Drivetrain as part of our community,” she said. “They have been and continue to be a great asset to the town.”
Scott Shade, executive vice president and company officer for Aisin Drivetrain, said the company is proud to be a major contributor to the Crothersville community.
For more on this story, read Thursday’s edition of The Tribune.