7/8/2006 6:27:00 PM Honda's ripple effect could impact three of Johnson County's largest plants
John Grabhorn assembles a Honda Civic strut at the KYB plant in Franklin. KYB, which employs more than 600 people, has provided struts and shock absorbers to Honda for 10 years. PHOTO BY SCOTT Roberson
Background
Casting Technology, Franklin
Relationship with Honda: Indirect supplier of air conditioning compressor parts.
Work force: About 100
How long has it been working with Honda: 12 years
Plant size: 180,000 square feet
KYB, Franklin
Relationship with Honda: Direct supplier of shock absorbers and struts
Work force: 650 employees, 40 temporary workers
How long has it working with Honda: 10 years
Plant size: 220,000 square feet
NSK, Franklin
Relationship with Honda: Direct supplier of wheel bearings
Work force: About 250
How long has it been working with Honda: Less than 10 years
Three of Johnson County’s largest employers are playing a waiting game.
KYB Manufacturing North America Inc., NSK Corp. and Casting Technology Co. build parts, either directly or indirectly, for Honda. But company officials don’t know how plans for a new Honda plant in Greensburg will affect them.
Honda hasn’t revealed what types of vehicles will be built in Decatur County. Rumors are circulating that the Honda Civic or Fit will be built there. Honda plans to tell suppliers soon, spokesman Ed Miller said.
Combined, the three companies employ more than 1,000 people.
KYB Manufacturing, located along U.S. 31 in Franklin, builds shock absorbers and struts for the Honda Civic, said president David Billingsley.
Honda is its second largest customer, behind Toyota. The company recently opened a 180,000-square-foot warehouse at the old Arvin plant in Franklin. Plans are under way to expand the plant’s production by 10 percent. The plant has 650 employees, with another 40 temporary workers.
“The new plant may create some additional business for us, but I can’t say if we’d have to hire more people,” he said. “You have to understand they aren’t opening until 2008.”
If Honda does build the Civic in Greensburg, Billingsley says KYB’s business could grow.
“Right now, they’re building the Civic in Ohio and Canada,” he said. “If they build in Greensburg, they’re going to cut down on their own transportation costs in shipping our parts.”
KYB has been supplying parts to Honda for 10 years.
“It’s going to help our company’s stability, at the very least,” Billingsley said.
NSK Corp., a global company with 250 employees at its plant in Franklin, makes wheel bearings for the Honda Civic and Accord, as well as the Odyssey minivan and Pilot sport utility vehicle.
The company also supplies to Toyota, Chrysler, Subaru and General Motors, said human resources manager Jim McGinnis.
“The new plant could mean more jobs,” he said. “But it all depends upon orders.”
Casting Technology Co. is also based in Franklin and has 100 employees.
It has been an indirect supplier of air conditioning compressor parts for Honda for 12 years. It sells parts to a company that works directly with Honda.
Chief executive officer Craig Conaty said, “It’s way too early to speculate how this will affect us. But what’s good for Honda, what’s good for the state are typically good for the companies in the supply chain.”
All three companies are unwilling to reveal exactly how much money they make from Honda. But all three plan to stay in Johnson County if they need to expand once the Greensburg plant is built.
“We have 52 acres of ground here at our facility, and that’s where we’d stay,” Billingsley said, pointing out that Franklin is the headquarters.
Casting Technology plans to stay in Franklin as well.
“We like it here, we can find the space to expand here,” Conaty said. “We have a good work force here, and we like it here.”
