21 August 2012

Auto Parts Supplier GKN Sinter Metals to expand operations in Salem, Indiana

Salem, Ind. – 21 August 2012 – Lt. Gov. Becky Skillman joined executives from GKN Sinter Metals, LLC today to announce the company’s expansion of its operations here. In 2010, the company committed to create up to 50 jobs by 2013 and has exceeded that goal, adding more than 75 net new jobs as of August 2012. 

GKN, a powder metal components manufacturer, committed in December of 2010 to invest $3.45 million to equip its 220,000 square-foot facility in Washington County. The company has since invested $7.1 million and plans to invest an additional $4 million in the next year. As part of the project, the company purchased compaction presses, sintering furnaces and automation for the furnaces and presses.

“With its optimal location, expansive infrastructure and high quality workforce, Indiana continues to hit the mark with automotive companies around the world,” said Skillman. “GKN is evidence of the advantages of doing business in southern Indiana, and we are proud to celebrate the accomplishments of this high-growth company.” 

The company plans to continue hiring additional manufacturing and production employees in Salem to accommodate its growing production capacity. 

Our plant has had a significant turnaround in the last four years, with our location in Salem as a tremendous asset in that process,” said Paul Cook, director of operations, segment II at GKN Sinter Metals. “The engagement, passion and drive of our employees throughout the organization are a real competitive advantage for us. Throughout this process the mayor, council and IEDC have been essential partners in strengthening our foundation here. The result of our investment is a successful, sustainable business that is positioned well to continue to grow and prosper in Salem.”

GKN Sinter Metals is a wholly owned subsidiary of U.K.-based GKN plc, with GKN companies and joint ventures employing approximately 44,000 people in more than 35 countries. Established in 1951 as Wel-Met Company in Salem, GKN uses a process known as powder metallurgy to make precision powder metal components used in the automotive industry. The company distributes directly to a vast portfolio of automotive companies, including Ford, General Motors, Hilite (a distributor to Chrysler and GM) and Means (a distributor to Mazda and GM). 

The Indiana Economic Development Corporation offered GKN Sinter Metals, LLC up to $250,000 in conditional tax credits and up to $100,000 in training grants based on the company’s job creation plans. These tax credits are performance-based. The city of Salem has provided additional property tax abatement at the request of Washington County Economic Growth Partnership.

Indiana Economic Development Corporation (IEDC) oversees programs enacted by the General Assembly including tax credits, workforce training grants and public infrastructure assistance. All tax credits are performance-based. Therefore, companies must first invest in Indiana through job creation or capital investment before incentives are paid. A company who does not meet its full projections only receives a percentage of the incentives proportional to its actual investment. 

Source: IEDC