A local automotive parts maker’s investment of nearly $40 million that also could bring 70 jobs to the area received the blessings of the Seymour City Council.
Aisin USA Mfg. Inc. came to Monday night’s council meeting seeking three 10-year tax abatements and received approval for all three.
Two of the abatements are for real estate improvements and qualified personal property at Plant 1 at 1700 E. Fourth St., Seymour. The other was only for qualified personal property at Plant 2 at 500 Burkart Blvd., Seymour.
S and S Diesel Motorsport at 3480 N. County Road 650W, Brownstown, also received a 10-year tax abatement from the council.
That company plans to relocate to 1471 W. Tipton St., Seymour, and spend $350,000 to renovate the building. S and S presently employs 10 and does not plan to hire anyone at this time, but that might change in the future, Jim Plump told the council.
Plump, executive director of Jackson County Industrial Development Corp., spoke on behalf of both companies.
Tax abatements are granted to ease companies into paying property taxes on new investments. That means over the next 10 years, Aisin USA and S and S will be increasingly less exempt from paying property taxes with exemptions going down by 10% each year.
In the first year of abatement, no property taxes or personal property taxes are due. The first full property tax and personal property tax payments will happen after the 10 years pass.
Plump said Indiana Economic Development Corp. also is supporting Aisin’s growth by offering Economic Development for a Growing Economy, or EDGE, tax credits to the company in the amount of $750,000.
Aisin USA plans on making investments to adapt to customer design changes and new model requirements for automotive components used in assemblies and shipped and sold to its customer base.
Vehicle models that Aisin USA provides components for include Toyota Sienna, Toyota Camry, Toyota Highlander, Toyota Corolla, Toyota Avalon and Honda Odyssey. It also manufactures parts for Chevrolet, Subaru and Lexus.
The total company investment for Aisin Plant 1 for new projects is approximately $31,311,420 with an estimated completion in July 2023. The company also is investing approximately $465,000 for renovations that will be completed within a year.
An estimated $7,936,870 will be invested at Aisin Plant 2 for new equipment. That project will be completed in two years.
Aisin presently employs 1,404 at Plant 1 and 486 at Plant 2. The company expects to add 70 jobs across both plants in response to the investments.
S and S Diesel is in the process of applying for a zoning variance that would allow the company to move to Seymour.
Owners Andrew Stauffer and Luke Langellier were hoping to move in faster by requesting a tax abatement before getting a zoning variance.
“They need to get into their new facility, get the building into the shape they need it and relocate their current equipment," Plump said. “But there is very good potential for future growth with new personal property, and with that could possibly come some new employees.”