By ANNIE GOELLER, Daily Journal of Johnson County staff writer
A Japanese hydraulic manufacturing company has picked Franklin as the site of its first facility in the United States.
Nishina Industrial Co. wants to build a $5 million plant near the Best Buy distribution center on Musicland Drive. By 2009, the company would hire 34 workers with an average wage of about $26 per hour.
The decision by the company is the second announcement of new jobs for the city in a week, both involving Japanese companies. KYB Manufacturing, the first Japanese company to locate in Franklin, recently proposed doubling the size of its building and adding 50 workers.
Nishina officials estimate wages to average about $34 per hour, including benefits, according to plans filed with the city. Johnson County Development Corp. estimated wages without the benefits at an average of about $26 per hour.
The company liked the area because of the available workforce, the price of land, proximity to Interstate 65, Interstate 465 and Indianapolis International Airport, and incentives the city offered, said Cheryl Morphew, director of the development corporation.
Company officials have asked for two 10-year tax breaks for $12 million in equipment and for construction of the $5 million building. If approved, the company would not pay taxes on the new building and equipment for the first year. The taxes would increase incrementally until the 10th year, when the company would pay a full tax bill.
Members of the city economic development commission submitted the request to the city council with a favorable recommendation. The city council will vote on the request Oct. 23, the same day members vote on 10-year tax abatements for $8 million in equipment and the $16 million expansion of the KYB building.
City officials said the company was also attracted to the area because of good relationships with other Japanese companies, such as KYB.
"When you're working with Japanese companies, it's all about relationships and building that trust and confidence," Morphew said.
Another Japanese company that was looking in Franklin for a possible plant recommended the area to Nishina officials, Mayor Brenda Jones-Matthews said.
In a letter to the city, a Nishina official said the company was seeking land in the Midwest and was impressed with Franklin.
"This is part of the ripple effect we're seeing as a result of continuing to build relationships with our Japanese partners," Morphew said.
The company is considering a 25-acre site on Musicland Drive, east of Graham Road and north of Arvin Drive.
No plans for the building or site have been submitted.
Based on the estimated cost of the building and the size of the potential land, Franklin planning director Joe Csikos estimated the plant could be 100,000 square feet or larger. By comparison, KYB has about 223,000 square feet.
Company officials estimate workers in the new plant would be paid anywhere from $24 to $77 per hour, which includes benefits. The company would hire the majority of workers as production employees, with a wage of about $25 per hour, including benefits, according to plans on file with the city.