Magna Expands Transmission Manufacturing
The Indiana Economic Development Corporation, together with automotive supplier Magna Powertrain, an operating group of Magna International, have announced the company’s plans to expand its transmission components manufacturing operations in Muncie, IN, creating approximately 50 new jobs through 2011.
The company, which produces powertrain systems and components for the global automotive industry, will invest $14 million to relocate service-part operations to Delaware County. To accommodate the new business, Magna Powertrain will lease a 100,000 square-foot facility located at 1400 West Fuson Road and add more than 180 new assets including two assembly lines.
“Magna Powertrain is the latest in a long list of companies to choose Indiana over competing locations thanks to our low-cost, low-tax business environment and highly productive workforce,” said Mitch Roob, Secretary of Commerce and chief executive officer of the Indiana Economic Development Corporation. “With a world of options available, we are pleased to see Indiana continue to win new investment.”
The Troy, Mich.-headquartered company, which employs approximately 9,000 associates worldwide, will begin adding engineers, operators and maintenance personnel early next year to accommodate the facility’s new operations. The building will be ready to accept equipment by December, with occupancy expected early first quarter.
“On this project we have been fortunate to collaborate with many talented and committed people in Delaware County and the state of Indiana, people who understand our business and help us achieve common goals,” said Tom Rucker, vice president, stampings group for Magna Powertrain. “The county and state both recognize the need for business-friendly programs, and as a result we’re pleased to be able to bring additional jobs and investment to the Muncie area.”
The Indiana Economic Development Corporation offered Magna Powertrain of America up to $275,000 in performance-based tax credits and up to $40,000 in training grants based on the company’s job creation plans. Delaware County is providing property tax abatement at the request of the Muncie-Delaware County Economic Development Alliance.
“Magna’s announcement today is very positive news for Muncie-Delaware County in terms of jobs and investment,” said Todd Donati, president of the Delaware County Commissioners. “This announcement not only shows that we can continue to expand our local footprint but also signals to the international community that Delaware County is a great place to do business.”
Magna Powertrain’s decision to relocate additional work to Indiana comes just days after Area Development magazine named Indiana the top state in the Midwest and 6th best in the nation for business, according to a survey of national site selection consultants.