ANDERSON — Anderson city officials this week will be asked to approve several resolutions that will bring NTN Driveshaft to the city, creating an estimated 450 jobs.
NTN Driveshaft currently has its headquarters in Columbus and is hoping to start production in Anderson in the fall of 2016.
The Anderson site, containing 80 acres south of the Nestlé plant on Layton Road, was selected by NTN officials over a proposed site in Georgia.
The Anderson City Council on Thursday will consider a resolution to declare the area an Economic Revitalization Area.
The Anderson Redevelopment Commission (ARC) and Anderson Plan Commission will be asked to consider amending the Tax Increment Financing (TIF) district to include the property.
According to documents filed with the Anderson Redevelopment Commission, the company will be investing approximately $129 million at the Anderson facility for the construction of a 325,000-square-foot building.
Included on the list of companies that NTN Driveshaft provides component parts to are Chrysler, Ford, General Motors, Honda, Subaru and Toyota.
Greg Winkler, executive director of the Anderson Economic Development Department, said the city has been in discussions with NTN since last September.
He said this is Phase 1 of the project, and the company is anticipating the creation of between 400 and 450 jobs at an average salary of $46,000 plus benefits.
Winkler said the ARC is purchasing 80 acres near Interstate 69 and NTN will pay $1.6 million for the entire parcel. The ARC will spend an estimated $3.2 million for the purchase of the 80 acres, depending on the appraised value.
Winkler said the ARC will also spend $7.7 million for a new water main, electrical substation, drainage and improvements to Layton Road.
He said the ARC will be paying for the purchase of the land and the infrastructure with cash on hand.
NTN is seeking a 10-year, 100 percent tax abatement which would result in a $15.8 million savings to the company.
In a document provided to city council and ARC members, it was noted that the tax abatement was necessary to secure the facility because the building, tax and utility costs in Georgia were $58.4 million lower than in Anderson.
Winkler said NTN builds driveshaft components for 4-wheel drive and heavy equipment.
The company intends to start construction in September and start hiring this year to train workers at the Columbus facility.
The Indiana Economic Development Corp. is expected to provide $5.2 million in training grants to NTN.
Winkler said there were three reasons the company selected Anderson over the Georgia location.
He said the company’s management team in Columbus will oversee the operations in Anderson. The second reason is logistics and quality control by not having to ship parts to Georgia and then back to Indiana for final assembly.
“We still have enough skilled manufacturing base workers," Winkler said, "and the people of Anderson understand shift work.”
Winker added he anticipates another NTN investment in Anderson in 2016 and that some suppliers to the company are looking at Anderson as a possible location.
“The exciting thing is the quality of the company,” he said of NTN. “There will be a health clinic on site for employees and their families at no cost.”
Winkler said NTN looked at several other sites before deciding on the Layton Road location.
He said this is the biggest jobs announcement since Nestle located in Anderson in 2009.
“Nestle’s was worth every penny we spent to have them locate in Anderson,” Winkler said. “It started the process of changing the city’s image. We started to attract global investments."
Chuck Staley, president of the Flagship Enterprise Center, said the NTN investment is a significant development for the city on par with Nestlé and other large companies.
“Developing drive trains is our sweet spot,” he said. “They are the largest drive train company in the world and suppliers will look at Anderson.
“Anderson is being seen as a competitor in the global market,” Staley added. “These are 450 good-paying, secure jobs.”
He said since General Motors closed its Anderson facilities, the city has been able to diversify its local economy, attracting companies not connected to the automotive industry.
“For a long time we were a one-horse town,” Staley said. “When GM got a cold, we caught pneumonia.”