GKN Sinter Metals, a producer of precision powder metal products, plans a $10 million expansion of its Gallipolis, Ohio, production facility, with plans to add 50 employees. The expansion will include installation of a new 750-metric-ton powder-compaction press, along with other capital equipment to launch production of differential-gear components developed at the plant.
The 175,000-square-foot facility currently has more than 160 employees and produces gears, clutch pressure plates and torque-converter components for a variety of customers, including Chrysler, General Motors, EXEDY, LuK USA and Allison Transmission.
Matt Daniels, plant manager, said the project is expected to generate up to $20 million in additional sales for the company over the next two to three years. "The untiring support that we've received from the community and all levels of government has made this program possible," Daniels said. "We are eager to install this new equipment and to begin production based on the new technology that's been developed here in Gallipolis."
GKN Sinter Metals received tax credits and development grants valued at nearly $800,000 to assist with the Gallipolis project from various state and local agencies. In addition, the State of Ohio awarded GKN a Job Creation Tax Credit and an Economic Development Grant with a combined worth of $380,000.
The Southern Ohio Agricultural and Community Development Foundation also provided the company with a $350,000 development grant. Local incentives included a City of Gallipolis Job Creation Tax Credit and a Gallia County Community Improvement Corporation Economic Development Grant with a total value of $60,000.
John Molinaro, president and CEO of the Appalachian Partnership for Economic Growth, added, " We have worked hard to improve the business climate in Ohio to ensure that investments like the one GKN has announced both make good economic sense for the company and promote the prosperity of the community, region and state. GKN's investment is a testament to their trust that Gallipolis and Appalachian Ohio provide a profitable operating environment, quality workforce and welcoming attitude."
County Commissioner Harold Montgomery said, "We are extremely pleased that GKN chose to expand in Gallia County. These are good jobs and much needed for our area. In the spirit of cooperation, we are pleased to see the state, county, city and CIC work together for one common cause to retain and create job opportunities in Gallia County."