Seymour Tubing, Inc., a division of a Japanese steel pipe supplier Sumitomo Pipe & Tube Co., LTD and Mitsui & Co. Inc., will invest $20 million to expand its operation in Jackson County, Indiana.
STI, which manufactures carbon and stainless steel tubing components used by carmakers, will add 51,000 square feet of manufacturing space to its facility located at 1515 E. 4th St in Seymour, Indiana, a city on Interstate 65 south of Indianapolis. As part of the project, the company will purchase new manufacturing and tube-forming equipment for its facility, which is slated to be operational next July.
"Indiana continues to see impressive investment from international companies in our automotive manufacturing industries," said Dan Hasler, Secretary of Commerce and chief executive officer of the Indiana Economic Development Corporation. "STI's growth in Seymour is yet another sign that Indiana's business friendly climate is creating a competitive environment for businesses around the globe to grow."
The company, which currently employs more than 390 Hoosiers, said it plans to begin hiring additional manufacturing, production and quality control associates later this year, initially employing about 18 new workers.
"In conjunction with the expansion of our facility and the installation of state of the art tube forming and cutting equipment, STI will be increasing the number of employees at our Seymour facility. The training grant from the state of Indiana will allow us to train these new employees as well as improve our current workforce skill set in the areas of quality, manufacturing and management," said STI accountant Lennie Eckhart. "We feel that with this training we can better serve our customers, our employees, our shareholders, and our community. STI appreciates the commitment that the state of Indiana has with its business community and their employees."
The company supplies steel tubing in various thicknesses, diameters, lengths and styles that is used primarily as structural components for automobiles. Indiana Economic Development officials said Seymour Tubing is forecasting an increase in sales for 2012 that will be a 20 percent increase over the last three years and projects an additional 20 percent increase over the next three years.
As an incentive, the Indiana Economic Development Corporation offered Seymour Tubing, Inc. up to $90,000 in training grants based on the company's job creation plans. These incentives are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The city of Seymour has approved additional property tax abatement at the request of the Jackson County Industrial Development Corporation.
"This has been an outstanding year for economic development in Seymour and Jackson County, and the decision by STI to expand here continues that momentum," said Seymour Mayor Craig Luedeman. "We pledge our support to STI as they grow and prosper in Seymour."