A multi-million-dollar Chiyoda USA expansion of its Capital Drive facility on the city’s East Side that is expected to create eight new jobs but elevate some employees and retain 363 others has been approved for tax abatement by the Greencastle City Council.
Kevin Redding, president and CEO of Chiyoda USA, said the company expects to start the project at once with equipment installation with a goal to complete the work sometime during 2025.
Councilman Darrel Thomas made the motion to approve Resolution 2023-15, establishing an economic revitalization area for Chiyoda as the precursor to tax abatement on the $6.21 million project.
After the other City Council members made it a unanimous vote, outgoing Mayor Bill Dory, attending the last meeting of his tenure, responded to Redding with “Thank you, sir. Thank you for your investment in the community.”
The 10-year abatement will be on a sliding scale, starting at 100 percent in year one and decreasing to 10 percent in year 10.
The estimated additional personal property taxes generated by the new equipment over the 10 years is $261,938, while the estimated local incomes taxes via the project is $418,330. Estimated savings to the company is $390,112.
The abatement will help Chiyoda crate a second-shift paint line, acquiring new silos, an air compressor, printers and screens for the press and chiller replacement in building 1, a paint conveyor chain section, evaporator coil repair, AMU burner upgrade and centrifuge replacement along with structure upgrades, two star robots, a vibration welder, 3D scanning equipment, 2,000-ton press and assembly equipment.
The majority of the work, Redding said, involves the new Subaru Outback model to be produced at the SIA plant in Lafayette, expected to roll off the assembly line once the current model stops being produced in 2025.
“We are looking ahead a lot more higher levels of automation,” Redding advised the Council. “We’re going to see the need for additional higher wage positions as opposed to straight manual labor positions. There are a lot of things we are doing to continue to advance the automation aspect of business. We look at this as a pretty significant investment.”
Chiyoda drew kudos from the Council “for working real hard” toward increasing its labor force. “They have really tried to step up their game, and it’s been noticed and appreciated,” Councilman Dave Murray praised.
Redding was asked about only eight new positions being created and how that impacts current employees.
“The advanced positions we have, we are posting internally first before we look outside,” he said. “There are certain skill levels we don’t have so we are looking at opportunities to increase those skill levels.”
Dory advised that Chiyoda is implementing a lot of automation in house, which he witnessed on a tour of the facility late last year.
“They have their own teams developing different systems,” Dory said. “Some of it is targeted in really mundane stuff and some is targeted in quality control so it can produce the best possible product. Any time we can help strengthen one of our companies in terms of technology and skilling up jobs, it is a benefit to our community.”
He noted that conversations have occurred with Ivy Tech and Vincennes University about the need for employees with automation skills.
“Not only does Chiyoda want these people, but so does everyone else,” Dory added.
In other business at the final City Council session of 2023, the Council said Merry Christmas to the employees of Greencastle by approving $1,000 bonuses to be paid out in the first payroll of 2024.
The bonus stipulates Council action with the approval of the mayor.
“I promise I won’t be a Grinch,” Dory said in a final comment. “I’ll approve it.”
The Council also:
• Heard Dory report that work on the U.S. 231 INDOT project is done for the year, but “the fun begins again next April.”
• Approved a $55,000 contract for professional services with the Greencastle/Putnam County Development Center for 2024.
• Approved increasing the city contribution to both Main Street Greencastle and the Putnam County Chamber of Commerce to $20,000 for 2024, an increase of $8,000. Councilman Murray, attending his final meeting, called the funding “minimal investments in the crown jewel of the downtown.”
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