Japan-based Mitsubishi Engine North America will invest $10.8 million to begin manufacturing turbochargers for automobiles in the United States at its Heavy Industries Climate Control's campus in Franklin, Indiana, creating up to 73 new jobs by 2016.
The turbocharger division will occupy approximately 18,500 square feet of the existing MCCA Franklin plant and add an additional 10,700 square feet of new construction.
Mitsubishi Heavy Industries, Ltd. said it will begin commercial production of automotive turbochargers in Franklin, Indiana, in the autumn of 2014 to meet significantly increasing demand. The U.S. Adoption of turbochargers for small gasoline engines is in an accelerating trend within the U.S. auto industry because of fuel efficiency regulations to be tightened in the U.S.
Until recently demand for turbochargers was modest in the North American auto market owing to the popularity of comparatively large gasoline engines, the company said. But now demand for turbochargers for small gasoline engines is increasing to meet demand from energy-conscious customers wanting to cope with tight fuel regulations such as Corporate Average Fuel Efficiency standard. The company said it looks to pursue shorter delivery times while simultaneously enhancing the quality and cost competitiveness of its products.
With the addition of the U.S. turbocharger production plant to its production bases in Europe and Asia, MHI will establish a structure enabling turbocharger final assembly in three major automobile markets.
As an incentive Mitsubishi Engine North America, Inc. the state of Indiana offered up to $600,000 in conditional tax credits and up to $100,000 in training grants based on its job creation plans.