Sister companies Aisin Drivetrain and Aisin Chemical Indiana were scheduled to appear before last night’s (May 6) Crothersville Town Council meeting to announce expansions to their respective manufacturing plants and seek property tax abatements.
ADI will be making a $14,386,800 investment in manufacturing equipment to produce a new commercial transmission and steering column lines which will create 42 new jobs.
Aisin Chemical, which is currently building on to its Crothersville plant, will be expanding even more. ACIN plans a nearly $10.5 million investment in another manufacturing building just north of its current plant and over $19.1 million in manufacturing equipment. All of which will allow the company to add 35 new jobs.
Both companies said they expect to begin expansion before this summer and be completed in mid-2015.
Aisin Drivetrain manufactures transmissions and torque convertors for the mid and heavy duty forklift and truck markets. They announced construction of the first manufacturing plant in the town’s industrial park in 1996 and currently employ 286 workers with total salaries paid of over $11.8 million annually.
The 42 new workers at ADI would be paid annual salaries of $1,177,464, according to the company’s statement of benefits to be filed with the town.
Aisin Chemical Indiana manufactures soundproofing and clutch discs for the automotive market. ACIN began construction of its $5.5 million facility in 2010 and announced an $8.1 expansion late last year.
Currently ACIN employs 51 workers paying annual salaries totaling over $2.6 million. The 35 new jobs are expected to be paid $1.225 million annually.
Including the workers at the third industrial park plant, Cerro Wire & Cable, as of January of this year more than 400 workers are employed at the industrial park
With the expansion announcement of the Aisin companies, the town of Crothersville is faced with an infrastructure challenge.
The only way in to the industrial park south of town is on Industrial Way which crosses the Louisville Indiana Rail Company line.
ILRC has announced plans to significantly increase the number of trains daily. With only the current access, emergency vehicles could be blocked from the industrial park.
A second road is proposed to be built connecting Industrial Way going west and curving north to connect to South Kovener Street. Cost of that new road is estimated to be $677,470, according to engineering estimates.
“These expansions and new jobs are great news for Crothersville,” said Jim Plump, executive director of Jackson County Industrial Development Corporation. “But the challenge facing us for this expansion is funding public safety and access into the town’s industrial park.”
Plump said he has been in contact with the Indiana Economic Development Corporation, and is negotiating how IEDC can participate in the roadway expansion.
Another cost consideration is installation of lights and crossing gates along the railroad at Industrial Way at a cost of $181,700.
The town has applied to the City of Lawrenceburg for a Regional Economic Development Grant which is funded from casino revenue. But approval of that grant is uncertain as the city is citing a downturn in casino revenue due to the economy and additional gaming venues.
With the companies’ investment and tax abatement, based on the town of Crothersville’s current tax rate, the town could realize over $2.176 million in new property tax revenue over 10 years, Plump said.