New Auto Parts Plant to Create Up to 420 Jobs
Muncie, IN (October 22, 2004) - Gov. Joe Kernan joined officials from one of the world's largest
automotive parts suppliers today to announce plans for a new
manufacturing facility in Delaware County, as a result of a state and
local incentive package that helped lure the project to Indiana.
Kernan and representatives from Magna Drivetrain of
America, Inc., 
a division of
automotive parts supplier Magna International Inc., announced a $73
million investment to build the new facility in Muncie. The new
manufacturing plant initially will create 310 new jobs, and Magna
Drivetrain expects to eventually hire a total of 420 people.
"Indiana
has a long-standing tradition as a home for the automotive industry,
with 135,000 Hoosier workers employed at more than 590 facilities
throughout the state," Kernan said. "Magna Drivetrain's decision to
invest in Indiana demonstrates not only that the automotive industry in
our state continues to be strong, but that Indiana is at the top of its
game when it comes to attracting new business investment."
The
new facility will produce transfer cases, which are power-train
components, for General Motors' next-generation full-sized pick-up
trucks and sport utility vehicles. It is expected to be in full
production within the next three years.
"Through collaboration
with the city of Muncie and county officials, the state of Indiana put
together an incentive package to meet Magna Drivetrain's needs, which
brings more good-paying jobs for Central Indiana workers," said Kernan,
describing how the state attracted the facility over locations in Ohio.
The
Indiana Department of Commerce's $4.6 million total incentive package
for the project includes:
* $120,000 in Skills Enhancement Fund
Grants;
* Up to $50,000 through the Technology Enhancement
Certification for Hoosiers fund to train technology professionals;
*
$377,500 from the Industrial Development Infrastructure Assistance
program; and,
* $4,100,000 in Economic Development for a Growing
Economy tax credits.
In addition, the Indiana Department of
Workforce Development is providing funding to match jobseekers' skill
levels to particular job requirements through Indiana@Work to help Magna
Drivetrain assemble its new team of workers.
"The availability
of Indiana incentives was a significant positive as we considered how
and where to focus our resources," said Pat Cerullo, President of Magna
Drivetrain of America. "We are delighted with the support we have
received from the state of Indiana, Delaware County and city of Muncie,
and are confident that the necessary state and local approvals will be
obtained before we start this project."
At the announcement,
Muncie Mayor Dan Canan and Delaware County Commissioner Jim St. Meyer
outlined the $6.7 million local incentive package, which includes
funding for purchasing land and environmental testing, a tax abatement
and tax increment financing.
"This project today is a direct
result of a total team effort on the part of this community," said
Delaware County Commissioner Jim St. Meyer. "We are excited to have a
growing company like Magna Drivetrain become part of our community, and
look forward to a long relationship with them."
Magna Drivetrain
will be located in a Community Revitalization Enhancement District
(CRED), which will provide additional benefits, and may be eligible for
additional tax credits through the Hoosier Business Investment Tax
Credit.
"We are proud to call Indiana the new home of our Magna
Drivetrain manufacturing facility, where we will benefit not only from
the support provided at the state and local levels, but from the
hard-working workforce that exists in Indiana," said Mark Hogan,
President of Magna International.
Magna Drivetrain, the newest of
seven automotive groups of Magna International, is a leading supplier
of drivetrain components and systems for four-wheel drive, all-wheel
drive, rear-wheel drive and front-wheel drive cars and light trucks,
including transfer cases, power takeoff units, axle differentials,
all-wheel drive couplings, complete chassis modules and mass balancing
units.
The Indiana Department of Commerce awards Skills
Enhancement Fund grants to Indiana companies that undertake capital
investment projects. The grants help defray the costs of training new
and current employees in basic work skills and company-specific skills
necessary to support the project. The Technology Enhancement
Certification for Hoosiers fund helps companies train existing
information technology professionals. Economic Development for a Growing
Economy tax credits are based on payroll and are awarded to companies
that may otherwise locate in another state or country.
Since
January, Commerce grants have helped support the creation of more than
11,158 new jobs and have leveraged more than $2 billion in private
investment throughout the state.
Magna International has
approximately 81,000 employees in 217 manufacturing operations and 49
product development and engineering centers in 22 countries. Magna
Drivetrain currently has facilities located in the United States,
Canada, Mexico, Austria and Germany.
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About the Muncie-Delaware County Economic Development Alliance:
Vision 2011 is the Delaware County's five year economic development program and is administered by the Muncie-Delaware County Chamber of Commerce and Delaware Advancement Corporation. For more information about the EDC, visit www.muncie.com.