ANDERSON — The Anderson City Council has resolved a paperwork error by approving a tax abatement for NTK Precision Axle.
The council on Thursday passed two resolutions providing a 10-year tax abatement on the company’s $98 million investment in Anderson in real estate and equipment.
Last month the council approved a resolution which granted NTK a waiver to apply belatedly for the property and equipment tax abatements.
Greg Winkler, executive director of the Anderson Economic Development Department said the company is making a $28 million investment in the real property and a $60 million investment in equipment.
Even with the abatement, NTK will pay $6.9 million in taxes over the next ten years.
Winkler said the company’s annual payroll is estimated at $6.5 million.
NTK plans to create 198 jobs in Anderson; Winkler said there are currently 55 to 60 people working on the first shift.
He said sister company NTN Driveshaft currently employs 380 people.
“NTK did not file their appeal for the real and personal property tax abatements in a timely fashion,” Winkler said at the May meeting when the waiver was granted.
Winkler said as part of the agreement between NTK Precision Axle and the city, the company will receive a 70 percent tax abatement on the real estate and personal property for 10 years.
Winkler said over the next 20 years, NTK Precision Axle and NTN Driveshaft will pay an estimated $34 million in taxes.
NTK is a subsidiary company of NTN, which started production in Anderson this year. NTK produces wheel hubs and parts for constant velocity joint axles for cars and trucks.
NTN Driveshaft is investing $90 million in the Anderson facility that is expected to create 510 jobs when in full production by the end of this year.
The Anderson plant will have the capacity to produce 300,000 constant velocity joints annually for the automotive industry.