COLUMBUS, Ind. — NTN Driveshaft is seeking approval from the City of Columbus for a tax abatement as part of a $90 million expansion it is planning in the Woodside Industrial Park. The expansion will add equipment and result in up to 100 new jobs within the next five years.
The company, which opened its Columbus operations in 1991 and manufactures driveshaft components, is seeking an $8 million tax abatement for an expansion at its facility, 8251 S. International Drive, and an additional $82 million abatement for new equipment it plans to add.
The 10-year tax abatement request will be considered by Columbus City Council during its 6 p.m. meeting today.
The NTN facility, which currently has 1.35 million square feet, would be expanded by 20,000 square feet to increase forging and production capacity, said Barry Parkhurst, vice president of administration of NTN Driveshaft. An additional 60,000 square feet of existing space would be updated to accommodate new manufacturing equipment, Parkhurst said.
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The plant is in a previously designated Economic Revitalization Area.
The warm forge press equipment to be added at the facility, which makes constant velocity joints for front-wheel-drive and 4-wheel-drive vehicles, will allow steel to be created into a finished part, Parkhurst said.
With this commitment to the city, NTN Driveshaft plans to retain 1,575 jobs in Columbus and plans to add 74 additional jobs with an average hourly wage of $17.30 by the end of 2020, according to the company’s tax-abatement application filed with the city. The company also employs 106 temporary workers, the application said.
The 74 new jobs are estimated to generate $2.6 million in annual payroll. When these new jobs are added, NTN estimates that it will have a $66 million annual payroll in Columbus.
However, the Indiana Economic Development Corp. offered NTN Driveshaft up to $750,000 in conditional tax credits based on 100 new employees by 2023, an even higher number than on documents filed with the city.
NTN Driveshaft plans to begin increasing its production by fall 2019 and anticipates the expansion being fully operational within three years. To support the new growth, the company will add forge press operators, maintenance workers and set-up associates and plans to begin hiring in mid-2019, according to the state Economic Development Corp.
“This decision shows the level of NTN’s commitment to our Columbus operation,” said Jim Riggs, president and CEO of NTN Driveshaft. “NTN is very satisfied with our relationship with the city of Columbus, the surrounding community and the state of Indiana. The mayor and his team worked very hard to make sure that this investment was made right here in Columbus. We thank them for their effort and willingness to work with us.”
The company most recently has been awarded tax abatements in Columbus for expansions in 2007, 2009 and 2012.
After multiple expansions in Columbus and through related operations in Frankfort and Anderson, NTN Driveshaft and its sister company, NTK Precision Axle, employ more than 2,000 associates in Indiana.
If the new tax abatement requests for Columbus operations are approved, NTN Driveshaft would save an estimated $588,297 over 10 years on the $8 million abatement, while it would save an estimated $2,550,897 on the $82 million investment being made on new equipment planned at the facility. Combined, that would represent a total tax savings for the company of $3,139,194 on its $90 million investment.
If NTN gets the go-ahead, the company expects to have the expanded building completed by spring with new equipment coming in within a year, Parkhurst said. The overall project will be done in phases over three years, he said.
“With any employer, as they expand, we want to see them grow and expand here,” Columbus Mayor Jim Lienhoop said of NTN Driveshaft, which is among the city’s top three manufacturing employers based on total employees.
“We’re particularly heartened that they will grow and grow in the community,” Lienhoop said. “It reflects well on the positive business environment we have here.”
Jason Hester, president of the Greater Columbus Economic Development Corp., praised the expansion plans by NTN Driveshaft, calling it a significant investment being made locally.
The majority of new jobs and investments made in Columbus come from companies that already have a foothold in the community, Hester said.
Hester will travel to Japan this fall with Lienhoop, including a visit to the NTN Corporation headquarters in Osaka, Japan, and thank company executives for making their investment in Columbus.
“It’s important to support companies like NTN when they have an opportunity to expand, and this $90 million investment is a good example of that,” Hester said.
NTN Driveshaft’s decision to expand in southeast Indiana continues a long-standing tradition of Japanese manufacturers choosing Indiana for growth, Governor Eric J. Holcomb said.
“We’re proud of our strong partnership with Japan, which now supports more than 290 business facilities in Indiana, and look forward to more milestones ahead thanks to companies like NTN Driveshaft,” Holcomb said.
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What: Columbus City Council will consider a request by NTN Driveshaft for tax abatements worth $3.1 million over 10 years as part of its agenda.
When: 6 p.m. today
Where: 123 Washington St., city council chambers
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NTN Driveshaft is a subsidiary of the NTN Corporation, established in 1918 and based in Osaka, Japan. NTN Corporation is a global manufacturer of mechanical parts and equipment, such as bearings, drive shafts and production equipment. The parent company has 219 locations in 33 countries.
Here is a timeline of key dates for the subsidiary.
1963: NTN Bearing Corp. of America is created to oversee the company’s North American operations.
1989: The manufacturer announces plans to build a $97 million facility in Columbus that will employ 250 workers.
1991: The Columbus facility opens.
1990s through 2000s: NTN Driveshaft goes through at least 11 expansions in Columbus, investing about $500 million in its local operations and growing its employee base to about 1,700 workers.
2015: The company announces plans to expand its Indiana operations, this time in Anderson.
2016: NTN Driveshaft, one of the three biggest manufacturing employers in Columbus, celebrates 25 years of operations in the city.
2018: The Columbus facility holds a celebration to recognize the 100th anniversary of NTN, its parent company.
Sources: NTN Americas, Columbus Economic Development Corp.
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