By Derek R. Smith, Daily Reporter

dsmith@greenfieldreporter.com

  GREENFIELD - Keihin Corp. is reorganizing its North American operations in a move that will at least temporarily rename the firm's Greenfield facilities.

   Effective today, Keihin Indiana Precision Technology Inc. will be known as Keihin North America to reflect Greenfield's role as corporate headquarters for the auto parts manufacturer, according to a news release. 

     "The name change is only the first step in the business reorganization," Keihin President/CEO Masami Watanabe said in the news release. "We are looking forward to a complete business rejuvenation that will energize our associates and strengthen our foundation core for the current environment and beyond." 

   The decision of where to locate Keihin's North American headquarters was a competitive process that involved other locations along the Interstate 69 corridor and in Ohio, said Dennis Maloy, executive director of Hancock Economic Development Corp. 

   Maloy said he has been involved with Keihin in its decision-making process over the past year. 

   "The good news is that (the headquarters) will remain here," he said. "It was touch and go whether it would stay here in Greenfield. I'm sure there was a lot of pressure to locate the facility outside of Indiana." 

   One argument for moving the headquarters would be to create a headquarters that's centrally located among Keihin's three other facilities, Maloy said. Also, Keihin's local product goes to the Honda plant in Ohio, so there was likely a push from Honda to locate the headquarters in Ohio, he added. 

   Keeping the headquarters here in Greenfield will keep management-level jobs here, Maloy said. 

   "Having those jobs here in Greenfield is a real positive," he said. "These are high-paying jobs. Decisions get made here in Greenfield as opposed to someplace else." 

   There's also a cachet from an economic development standpoint for the county to have corporate headquarters like that of Keihin and Elanco, Maloy said. 

   Also, keeping the headquarters here should be a boon from a corporate citizenship standpoint, he said. 

   "Typically, what happens when a company headquarters goes away (is) that kind of philanthropy (that Keihin is known for) tends to go away as well," he said. 

   The company has discussed using a separate building to house headquarters staff, Maloy said. One possibility, he added, is the former Vacumet plant. That building is close to Keihin's facilities on West New Road. 

   Privately held KNA manufactures engine management systems, HVAC systems and electronically actuated systems for the automotive and power sports markets. In Greenfield, KIPT builds intake manifolds and fuel injection systems for Honda vehicles. The plant - which is the county's largest industrial employer - has about 900 employees. 

   KNA will be adding administrative, business planning, materials, quality, overall production and technical functions in order to grow and become more efficient, the news release said. 

   Like many other automotive suppliers, Keihin has been hurt by the severe downturn in the automotive market. 

   Last month, KIPT decided to permanently lay off about 180 employees - or 20 percent of its local workforce - as it struggles with the effects of the recession. It marked the first time in 20 years that KIPT had to permanently reduce its head count, a spokeswoman said at the time. 

   Keihin began U.S. manufacturing in 1989 in Greenfield and has since added facilities in Muncie, North Carolina and Michigan. 

   Keihin has global sales of $3 billion, according to the news release. Its chief customer and largest shareholder is Honda Motor Co. 

   Like other automakers, Honda has seen its sales decline in recent months as the United States and other nations have gone into recession.