ANDERSON, Ind. (March 3, 2017) –
Anderson Mayor Thomas Broderick, Jr. and Tadao Okamura, President of NTK Precision Axel Corp. (NTK), a global automotive supplier, announced on Friday in a joint press conference held in the Anderson City Hall atrium that NTK and the city have reached an agreement for the building of a new manufacturing facility in Anderson. The agreement provides that NTK will invest approximately Ninety two million ($92,000,000.00) dollars in both real and personal property in the city. The building will be approximately 300,000 square feet and the company will employ about 198 people in the new facility with start of production by October 2018. The annual payroll will be approximately $7.2 million dollars plus benefits. In addition, NTK has agreed to provide 10 internships for Anderson city high school students and 2 scholarships for Anderson city high school students wishing to attend Anderson University, Purdue University College of Technology or Ivy Tech Community College. The facility will be located on south Layton Road north of 73rd Street.
Mayor Broderick stated, “We are excited that NTK and the city were able to come to an agreement that is favorable to both the city and NTK. This substantial investment into our community will bring new employment and continued economic growth for our citizens.”
Greg Winkler, Economic Director for the City of Anderson, explained that the agreement is subject to approval by the Anderson Redevelopment Commission, the Anderson Economic Development Commission and the Anderson City Council. “The agreement includes an incentive of $1.6 million from Tax Increment Revenues (TIF) to assist in development costs and 70 % tax abatement on the real and personal property for 10 years. After that period the abatement will end and we will be collecting 100% on the assessments,” Winkler stated.
Mayor Broderick explained, “We are very excited about NTK becoming part of our community and bringing employment opportunities for our citizens, but it was also important that they contribute to our community through the payment of taxes. I am pleased that the agreement will allow the city to begin receiving taxes the first year after assessment.”
Additionally, the Indiana Economic Development Corporation (IEDC) was also instrumental in proving support and incentives to this project, according to mayor Broderick. Pending approval of the IEDC Board of Directors, the IEDC will offer NTK up to $1,000,000.00 in conditional tax credits based on the company’s plans to create 140 jobs by 2020. The tax incentives are performance-based requiring hiring goals to be met prior to being able to claim credits. Jim Schellinger, Indiana Secretary of Commerce stated, “Here in Indiana, we are home to the highest concentration of manufacturing jobs in the nation because our state has worked hard to build a pro-growth business climate. Global companies like NTK are choosing Indiana because we offer a low-cost, low-tax, limited regulation environment with a workforce that is second-to-none. Every day, Hoosiers across the state are building products that power our world, and I’m confident that our skilled workforce will help drive NTK’s growth and success for years to come”.
Mayor Broderick stated that he, Winkler and David Eicks, Chairman of the Board of Works, traveled to Columbus, Indiana for the final round of negotiations. Winkler explained that NTK was exploring other communities in addition to Anderson. “We were in a competitive process and I am happy to report that the team approach headed by our mayor was successful. I am confident that the Redevelopment Commission, the Anderson Economic Development Commission and the Council will approve the agreement,” Winkler stated.
President Okamura said he was excited that Anderson would become part of their company and that they look forward to a long and prosperous relationship with the city. He explained that “NTK Precision Axle Corporation is a subsidiary company of NTN Corporation, a global bearing manufacturer. NTK manufactures wheel HUB’s and constant velocity joint (CVJ) automotive axles for both two-wheel and four-wheel drive vehicles. Our parts make their way to more than 15 different automakers, which translates to one fourth of the cars and light trucks on the open road, riding on our products.”
NTK is a joint partnership between NTN USA CORP. (headquartered in Mount Prospect, IL., USA), Takao Kogyo, an international company related to precision machining of power train parts; and Neturen USA, an international company related to induction heating apparatus-related products.
Mayor Broderick said, “I would like to express my gratitude for the representatives of NTK and NTN who worked with the city and our economic team to reach this agreement. We look forward to a long relationship with NTK and continued employment and growth opportunities for our residents and our community.”
NTK plans to break ground on the new facility this spring.
About NTN Corporation
Founded in 1918. Headquartered in Osaka, Japan. NTN is a global manufacturer of mechanical parts and equipment, such as bearing, driveshafts, hub bearing. NTN established its first company in the US in 1963, and now has 9 bases of manufacturing and sales, and research and development. In Indiana, NTN established NTN Driveshaft in Columbus in 1990, NTK Precision Axle in Frankfort in 2004, and newly established NTN Driveshaft Anderson Inc. (NDA) in 2015. NTN has employees of approximately 5,000 people in the US and approximately 2,000 people of them in Indiana.