ANDERSON – BorgWarner has announced plans to consolidate its Anderson and Pendleton operations and move all 325 jobs into a facility to be built in Noblesville.
The company plans to begin construction of the two-story, 100,000 square foot facility in June, pending approval from the Noblesville City Council, with construction to be completed in spring 2018.
Rob Sparks, director of the Madison County Corporation for Economic Development, said the move is a blow to the county.
“It’s always disappointing when a company decides to move," he said. "We work very hard to attract and keep businesses.”
Sparks said the CED offered four options in an attempt to keep BorgWarner in the county.
Pendleton Town Manager Tim McClintick said he had been in negotiations with BorgWarner to persuade the company to consolidate in Pendleton.
“A representative called to let us know we had been in the running until the very end but the corporate office decided to go elsewhere,” McClintick said. “Obviously, we are disappointed. You hate to lose them as a member of the community … hate to lose the jobs out of the community.”
However, McClintick said he was happy BorgWarner isn't moving far away, just one exit down Interstate 69.
“The good news is a number of local people will be able to maintain their jobs. Another good thing is they didn’t move out of state or out of the country,” McClintick added.
Leases on the Pendleton and Anderson facilities are set to expire in 2018 and 2020, respectively.
As construction is completed, employees from the Madison County facilities will be shifted to the Noblesville location, with all of the employees working in the new facility by the time the leases expire.
“It won’t be everything all at one time,” said Martha Avery, a representative of BorgWarner.
Located at Olio and 141st Street, the new technical center will provide space for engineers, designers, technicians and office employees who support key product lines, including automobile starters, alternators and electrification technologies.
“Like other BorgWarner technical centers, the new facility will feature an open-concept design with interactive office environments and spontaneous collaboration zones to improve efficiency, enhance communication and inspire innovation,” said Dr. Stefan Demmerle, president and general manager, BorgWarner PowerDrive Systems, in a press release.
Currently, BorgWarner employs 325 people between the two Madison County facilities. Over the next five years, BorgWarner plans to add an additional 23 employees, Avery said.
The company also plans to purchase $13 million in new property, such as machinery and lab equipment, to be installed within five years.
If approved by the Noblesville City Council, BorgWarner will receive as much as $3.8 million toward the approximately $28 million investment for land acquisition, construction and equipment costs. In addition, the city would reimburse the company for $309,000 in road and sewer impact fees.
“BorgWarner’s emphasis on innovation and advanced research is perfectly aligned with our vision to attract and grow companies that will uniquely enhance the local economy,” said Noblesville Economic Development Director Judi Johnson.
“We appreciate that BorgWarner selected Noblesville because it fit the needs of their workforce and offered the best mix of infrastructure and amenities.”