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.
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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 an 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 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.
“ADI maintains a diverse, equal opportunity working environment to facilitate professional growth,” he said. “ADI strives to provide a stable working environment for its employees and their families.”
With the company’s easy access to Interstate 65 and close proximity to major cities, Shade said Crothersville is an ideal site to support the industry’s operations.
“This allows ADI to work closely with its customers,” he said.
Since 2008, Aisin Drivetrain has invested nearly $80 million into its Indiana operations, according to a news release from IEDC.
Aisin Seiki, which is a part of Toyota Group, designs and manufactures automotive and industrial parts and lifestyle and energy products. The company is one of the top-10 global automotive suppliers, producing a variety of parts, including transmission, brake, engine and IT units, according to IEDC.
Aisin has more than 115,400 employees people across the world, including 3,934 in Indiana. Aisin has 10 companies in Indiana, including Aisin Drivetrain and Aisin Chemical Indiana in Crothersville, Aisin USA Manufacturing in Seymour, ATTC Manufacturing in Tell City, ADVICS Manufacturing Indiana in Terre Haute, Aisin Franklin Logistics Center in Franklin and INTAT Precision in Rushville.
Aisin Drivetrain is among the more than 280 Japanese business establishments in the state, employing more than 58,000 Hoosiers, according to IEDC.
Indiana has the largest amount of Japanese investment per capita in the United States, the IEDC said. In 2017, 40 foreign-based companies committed to locating or growing in Indiana, planning to create 5,607 new jobs for Hoosiers.
“Global companies like Aisin Drivetrain continue to find success in Indiana, and they provide good jobs for Hoosiers,” Indiana Gov. Eric Holcomb said. “We’ll continue sharing our economic success story and ensuring businesses like Aisin Drivetrain have access to our skilled workforce and pro-growth business environment.”
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Founded Oct. 1, 1996, Aisin Drivetrain Inc. is a manufacturer of a wide range of products for customers in the automotive and heavy equipment industries, including Toyota, Lexus, FCA and Nissan.
The Crothersville company’s products include industrial transmissions, commercial transmissions and power steering columns.
With its recent investment announcement, the company plans to add more than 40 jobs, completing the hiring for manufacturing positions in August. New positions are expected to offer competitive wages.
Interested applicants can apply by mailing résumés to Aisin Drivetrain Inc., 1001 Industrial Way, Crothersville, IN 47229 or completing an application in person.
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