City Council seals deal bringing NTN and up to 450 jobs to Anderson

The Anderson City Council on Wednesday voted unanimously 7-0 approving the 100 percent 10-year tax abatement for NTN Driveshaft, that is currently located in Columbus. The vote was followed by a round of applause from those supporting the project. Councilmen Ollie H. Dixon and David Eicks were not in attendance.

During a public hearing on the tax abatement there were no public comments and only one question during the actual vote by Councilman Rodney Chamberlain.

Chamberlain asked Jim Riggs, president of NTN Driveshaft, when the company would begin the hiring process.

Riggs said hiring will start in advance of actual production, scheduled for April 2017, so that workers can be sent to the Columbus plant to be trained.

“Once the equipment is here, we want to hit the ground running,” Riggs said. “We will start shipping product in April 2017. We won’t be in full production, but will be supplying product.”

When the plant opens in the spring of 2017, it will have the capacity to produce 300,000 constant velocity joints for the automotive industry.

NTN provides the joints for every automobile company except for Volkswagen and BMW because the Columbus plant didn't have the capacity to manufacture the component parts.

Greg Winkler, executive director of the Anderson Economic Development Department, said the sale of 80 acres to NTN near the intersection of Layton Road and 73rd Street will take place on Sept. 9. NTN is purchasing 40 acres at a cost of $1.6 million and an additional 80 acres for $1, which was purchased by the Anderson Redevelopment Commission for $1.6 million.

The acquisition of the land by NTN Driveshaft was included in the incentive package offered by the city.

“Our desire is to start construction as soon as possible,” Riggs said. “We want the concrete work done before winter and start constructing the walls next spring.”

Riggs said it will take one year to construct the first phase of the project and obtain the necessary equipment.

Following the council's vote, Riggs said he appreciated the work of Winkler and the economic development staff and Anderson city officials.

“They did a wonderful job of attracting us to Anderson,” Riggs said. “You will find out we’re good neighbors. Let’s go forward together.”

Anderson Mayor Kevin Smith asked those at the meeting to give the council members a round of applause for their votes in support of the NTN project.

“Anderson has come a long way,” he said. “In the mid-1970s this project would not have come to Anderson.”

Smith said the council broke through a “glass ceiling” in recent years when it supported the relocation of GTI from Ohio.

“I have a great deal of gratitude for you seven that believe in this city and continued job growth.”

Chuck Staley, CEO of the Flagship Enterprise Center, said NTN Driveshaft locating to Anderson is a huge win for the city.

“What the council did will have an impact on Anderson for a long time,” he said. ”We can leverage this to attract support and supply companies.

“It gives Anderson another international presence,” Staley said. “This is a win-win.”

With Nestlé USA, GTI and now NTN Driveshaft selecting Anderson as a location, it’s a statement about the business climate in the community, Staley said.

NTN will make an initial investment of $28.2 million for the building and $54.7 million in equipment during the first phase. The company will invest an additional $60 million for equipment in the second phase.

There is an incentive clause for the hiring of Anderson residents. For every local resident the company will receive 1.5 credits toward the 400 jobs by 2019.

The city’s tax abatement incentive package to NTN was reduced from $15.7 million to $11.7 million, a savings of $4 million.

Winkler said the total savings to the city amounts to $6.7 million with the additional savings coming in infrastructure improvement costs.

The Indiana Economic Development Corp. is expected to provide $5.2 million in training grants to NTN.