37th trade mission mines foreign investment: Japanese firm planning Columbus expansion

Columbus’ latest trade mission to Asia has borne more fruit, while enhancing new relationships that could lead to additional foreign investment, city leaders said.

A Japanese company with a small manufacturing operation in Columbus confirmed that it plans to expand in the city, building a new manufacturing facility that would create additional jobs, said Mayor Jim Lienhoop and Jason Hester, president of the Greater Columbus Economic Development Corp.

Lienhoop and Hester traveled to Japan and India for a nearly two-week trade mission in late October and early November. It marked the 37th annual trip to Japan with the Economic Development Corp. as part of the delegation, Hester said.

The mayor and Hester had a confidential meeting with the expansion-minded Japanese company Oct. 24. Hester said the company is expected to come before Columbus City Council in January to request tax abatements.

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Specific details about the company, the amount of investment and number of jobs that would be created would be shared at a later date, Hester said. However, Lienhoop said the investment would be a few million dollars.

“It’s a significant investment for that company,” Hester said.

The city and the Economic Development Corp. have been working with the company for about 1 1/2 years on the expansion effort, Hester and Lienhoop said.

“Our visit was timely,” Lienhoop said. “Part of the draw initially that attracts folks to the area is I-65, because they want distribution of their product. So when they consider expansion, they look all up and down I-65.”

Even though the company has a foothold in Columbus, “we’re in competition with other communities for this expansion,” Lienhoop said. “That is a big reason why we go to Japan, to exhibit the interest we’ve got here.”

A local delegation started making annual trade trips to Asia after three-term Mayor Robert N. Stewart took office in 1984. Today, Columbus has 28 Japanese companies with operations in the city, and 41 foreign-based companies in all.

Lienhoop and Hester altered their Asia trip plans during the summer, scheduling the week in India instead of China because of the impact of the United States’ foreign trade policies, including tariffs.

They viewed it as a good opportunity, however. Bangalore-based AXICADES, a global product engineering and technology solutions company, selected Columbus for its North American headquarters in December, making it the second Indian company to establish operations in the city. The first was KPIT, an engineering services company, that started in 2002. Additionally, Columbus-based Cummins Inc., a global power company, opened a technical center in Pune on March 1.

Japanese relations

One of the stops in Japan for Lienhoop and Hester was in Osaka, where they met with NTN executives for more than an hour. The purpose was to thank them for the company’s $90 million investment in Columbus.

NTN, which opened operations in Columbus in 1991, announced in October that it would be expanding at Woodside Industrial Park and adding up to 100 jobs by 2023. The company has expanded about a dozen times since coming to Columbus.

“We’re obviously appreciative of the continued investment that they planned for our city. It was an opportunity to say ‘thanks,’ and to listen to what their plans are,” Lienhoop said.

Two common themes, the impacts of electrification and tariffs, emerged in talks with Japanese company executives, Lienhoop said.

Tariffs imposed by the U.S. and other countries on each other might prompt some Japanese companies to seek exemptions, the mayor said.

Japanese executives also discussed how the emergence of electric vehicles could impact suppliers, such as parts manufacturers at Walesboro. How an electric vehicle distributes power to its wheels determine whether a driveshaft made by NTN, for example, can be used for the vehicle. Also, nuts and bolts made by Rightway Fasteners and Sunright America for internal combustion engines and transmissions wouldn’t be used for electric vehicles, the mayor said.

“The good news is they are planning and paying attention to the market,” Lienhoop said.

A meeting with the Kansai Pharmaceutical Industries Association provided the mayor and Hester with a better understanding of the Japanese pharmaceutical industry in North America and opportunities to attract that type of investment, Hester said.

The pharmaceutical industry is one that Columbus is strategically pursuing to diversity its economy so that it relies less on manufacturing for the auto industry.

Hester said what he and the mayor learned is that Japanese pharmaceutical manufacturers that are not yet in North America are unlikely to come in the near future because of concerns including costs and regulatory hurdles.

The visit to Japan also produced a long-term investment lead with a battery technology company, Hester said.

Opportunity in India

While the visit to Japan was largely building upon previously established relationships, the week in India was a mix of that and sharing Columbus’ story for the first time with new investment prospects.

They were accompanied in India by Raju Chinthala, a senior adviser with the Indiana Economic Development Corp.

Lienhoop and Hester met with top executives from AXISCADES, KPIT and Cummins Indiana. They also toured Cummins’ new technical center in Pune.

They also:

Conducted two foreign direct investment seminars that were attended by more than 20 companies and business organizations combined

Attended a business networking dinner

Attended a prospecting meeting with the World Trade Center of Pune

Attended a lunch meeting involving an investment prospect

“We had a good introductory dialogue,” Hester said of the two seminars.

Lienhoop said it was an opportunity to explain where Columbus is and for shipping purposes how two-thirds of the U.S. can be reached in an 11-hour period from the city.

The mayor also noted that the new contacts in India were pleased to hear that the city had recently hosted a cricket tournament — a sport widely popular in India — and has been home to Indian festivals such as Diwali and Ganesh.

Hester said the India trip produced one active investment lead that could bear fruit next year.

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An overview of the trade mission trip to Japan and India by Columbus Mayor Jim Lienhoop and Greater Columbus Economic Development Corp. President Jason Hester.

Oct. 22: Depart Indiana for Japan.

Oct. 23: Arrive in Nagoya, Japan.

Oct. 24: Sister city meeting with Miyoshi Mayor Kenji Onoda and other officials, lunch. Company meeting with president of Miyama (parent of Capco). Confidential meeting with company about expansion opportunity. Company meetings with Meidoh (parent of Rightway Fasteners), Shinsho and Meihoku Kogyo.

Oct. 25: Day trip to Osaka. Company meeting with NTN president. Meeting with Japan External Trade Organization to discuss foreign direct investment climate. Exploratory meeting with Kansai Pharmaceutical Industries Association. Confidential prospect meeting.

Oct. 26: Traveled to Nishio City. Company meeting with president of Sugiura Seisakusho (parent of Sunright America).

Oct. 27: Depart for India; arrive in Bengaluru (formerly known as Bangalore).

Oct. 28: Free day. Sightseeing in Bengaluru.

Oct. 29: Two prospecting meetings: Columbus foreign direct investment seminars, one hosted by Indo American Chamber of Commerce, attended by 11 companies/organizations; one hosted by World Trade Center of Bangalore, attended by 10. Company meeting with chairman of AXISCADES. 

Oct. 30: Company meeting with CEO of AXISCADES. Departed for Pune.

Oct. 31: Meeting with Cummins India managing director and team at Pune Technical Center. Dinner meeting with Cummins India executives. 

Nov. 1: Company meeting with KPIT executives. Sister city meeting with Pune mayor. Tour of KPIT offices. Business networking dinner hosted by CEO of AXISCADES.

Nov. 2: Meeting with World Trade Center of Pune and lunch meeting with investment prospect. Departed India.

Nov. 3: Returned to Indiana.

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Currently, 41 foreign companies operate in Columbus, with Japananese-based firms leading the way with 28, according to Greater Columbus Economic Development Corp. 

The 41 foreign companies combined have 8,922 employees. Three top foreign-based have at least 1,000 employees in Columbus:

  • Faurecia Mobility (1,635), based in France
  • NTN Driveshaft (1,599), based in Japan
  • Toyota Industrial Equipment Manufacturing (1,120), based in Japan

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