12 February 2013

Nishikawa of America to invest $8.6 million and create 25 new jobs in Indiana

Topeka, Ind. - 11 February 2013 – Japanese auto parts manufacturer Nishikawa of America (NISCO), a sealing systems manufacturer, announced plans to expand its operations in Indiana. The company will invest $8.6 million to equip its current 200,000 square-foot facility at 324 Morrow St. in Topeka, creating up to 25 new jobs by 2014. 

As part of the expansion, which is expected to be completed by December, NISCO will install three new rubber-extrusion lines and additional injection molding presses. The company currently employs 925 full-time Hoosiers and has already begun hiring additional extrusion line operators and direct labor operators. 

The Hoosier State’s automotive manufacturing industry has grown into a national leader due to the continued investment of companies like NISCO,” said Eric Doden, president of the Indiana Economic Development Corporation. “Our attractive business environment and solid financial position help Indiana stand out as a state that works for business.” 

Today’s announcement marks NISCO’s second expansion in less than a year. Last June, the company announced plans to invest $5.5 million to add additional equipment to its Topeka facility, creating up to 15 new jobs. 

NISCO has efficiently produced parts in Indiana since 1986,” said Mike Talaga, vice president and general manager of NISCO. “We have an experienced and technical workforce here that we are pleased with and look forward to employing Hoosiers for many more years.” 

Founded in 1986 as a joint venture between Japan-based Nishikawa Rubber Company and Michigan-based Cooper Standard, NISCO manufactures sealing systems for both foreign and domestic original equipment manufacturing (OEM) automotive companies. A Tier-1 supplier for Honda, Toyota, Chrysler and Subaru, the company has a second facility located in Bremen, Ind. and a sales and design office in Novi, Mich. 

The Indiana Economic Development Corporation offered Nisco Holding Co. and Nishikawa of America up to $160,000 in training grants based on the company’s job creation plans. These incentives are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The town of Topeka approved additional tax abatement at the request of the LaGrange County Economic Development Corporation. 

“We are happy to support the expansion of NISCO in the town of Topeka,” said Yvonne Eash, president of the Topeka Town Council. “NISCO is one of our largest employers that continues to grow while diversifying our industrial base.” 

Indiana boasts the second largest motor vehicle manufacturing industry in the United States and is currently the only state in the nation that is home to four international OEM automotive companies: Subaru, Toyota, Honda and Fiat. 

The 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