GKN Sinter Metals Plans Additional $4 Million Investment In Southeastern Indiana Manufacturing Plant, Exceeding Hiring Goals
GKN Sinter Metals, a wholly owned subsidiary of U.K.-based GKN, uses a process known as powder metallurgy to make precision powder metal components used in the automotive industry. The company distributes directly to a vast portfolio of automotive companies.
In December 2010 GKN invested $3.45 million to equip its 220,000-square-foot facility at 198 Imperial Drive in Salem Indiana, a city northwest of Louisville, Kentucky. The company has since invested $7.1 million in its plant complex, with plans to invest an additional $4 million in the next year.
As part its latest expansion plan, the company purchased compaction presses, sintering furnaces and automation for the furnaces and presses. In addition GKN, which committed to creating up to 50 jobs by 2013, has exceeded that goal, adding more than 75 net new jobs as of August 2012. Indiana Economic Development said the company plans to continue hiring additional manufacturing and production employees in Salem to accommodate its growing production capacity.
"Our plant has had a significant turnaround in the last four years, with our location in Salem as a tremendous asset in that process," said Paul Cook, director of operations, segment II at GKN Sinter Metals. "The engagement, passion and drive of our employees throughout the organization are a real competitive advantage for us. Throughout this process the mayor, council and IEDC have been essential partners in strengthening our foundation here. The result of our investment is a successful, sustainable business that is positioned well to continue to grow and prosper in Salem."
"With its optimal location, expansive infrastructure and high quality workforce, Indiana continues to hit the mark with automotive companies around the world," said Lt Gov. Becky Skillman. "GKN is evidence of the advantages of doing business in southern Indiana, and we are proud to celebrate the accomplishments of this high-growth company."
As an incentive, the Indiana Economic Development Corporation approved up to $250,000 in conditional tax credits and up to $100,000 in training grants based on the company's job creation plans. These tax credits are performance-based. In addition, the city of Salem provided additional property tax abatement at the request of Washington County Economic Growth Partnership.
"As mayor it has always been my goal for city and state government to work as one in supporting our local business and industrial community," said Salem Mayor David Bower. "Our combined vision has been to create jobs and opportunities while providing support to our corporate partners."
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