Heartland Automotive Details Major ExpansionPosted: Updated:
An auto parts supplier is poised to create more than 220 jobs in Lafayette. Heartland Automotive LLC is planning to invest nearly $40 million into the expansion, which is driven by a more than $400 million expansion announced in May by the company's primary customer, Lafayette-based Subaru of Indiana Automotive Inc. Governor Mike Pence hinted at the announcement during a trade mission to Japan earlier this month. The city council could take up tax abatement approval as early as next month. On Thursday, the city's redevelopment commission recommended council sign off on the breaks.
The move would also approximately double the size of its current facility.
Heartland currently has more than 120 employees at the Tippecanoe County facility. Last year, the company began operations at a more than $8 million new plant.
Sources: WBAA, Inside INdiana Business
September 27, 2013
Lafayette, Ind. -- Heartland Automotive, LLC, a subsidiary of Japan-based Shigeru Company, Ltd., announced plans today to expand its operations here, creating up to 224 new jobs by 2016.
The company, a manufacturer of interior and exterior automotive parts, will construct and equip a new facility on its 27-acre campus located at 3700 David Howarth Drive in Lafayette. The facility, which is expected to be operational by spring 2016, will allow the company to meet its growing product demand from Subaru of Indiana Automotive's nearby Lafayette manufacturing plant.
"Optimism was a key theme from my meeting with the leadership of Heartland's parent company in Japan," said Governor Mike Pence. "Recurring investment from Japan's automotive industry continues to grow the Hoosier economy. With Subaru's expansive growth, we're excited to see this domino effect from Heartland and the company's continued choice of Indiana as its American home. Companies need the freedom to do what they do best, which we provide for them as a state that works through our limited regulation and low taxes. Our mission to make Indiana the most business-friendly state in the country continues because it is the key to expanding opportunities for every Hoosier."
Today's announcement comes on the heels of Pence's return from his inaugural jobs and economic development mission to Japan earlier this month. While in Ota City, Japan, the governor discussed these expansion plans with Heartland's parent company, Shigeru. Executives indicated during the meeting that the company would announce growth plans in the near future that could create hundreds of new jobs for Hoosiers at its Lafayette facility.
"With a partnership from our customers and the local community, Indiana is providing the perfect environment for strong business growth," said Ronan Miot, senior vice president of Heartland. "The market for selling cars in the United States is solid and our proximity to our customers and suppliers in Indiana is ideal. When you also consider the competitiveness, strong workforce and very supportive state and local governments, expanding in Indiana was the obvious choice."
Heartland, which currently employs more than 90 full-time associates in Indiana, will begin hiring manufacturing, engineering and manager positions in the upcoming months.
The Indiana Economic Development Corporation offered Heartland Automotive, LLC up to $340,000 in conditional tax credits and up to $200,000 in training grants based on the company's job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The city of Lafayette will consider additional property tax abatement at the request of the Greater Lafayette Commerce.
Founded in 1987, Heartland supplies automotive manufacturers with plastic molded, painted and assembled parts. Between its Indiana locations in Greencastle and Lafayette, it currently supplies parts for the Toyota Camry, the Subaru Outback and Legacy. These products include instrument panels and doors, consoles, pillars, headliners, aprons, rear gates and exterior cladding.
"Heartland's announcement is an important part of the expansion of Subaru as they bring more auto production here as well as our local economy. The multiplier effect from these companies and their investments will create hundreds of additional jobs in greater Lafayette and throughout Indiana," said Lafayette Mayor Tony Roswarski. "This is another example of how our team approach to economic development benefits us all."
Indiana is recognized as a hub for international automotive manufacturers and their suppliers, with three Japan-based original equipment manufacturers--Subaru, Toyota and Honda--operating facilities in Indiana. Indiana's motor vehicle industry is the second largest in the U.S, with more than 630 automotive companies calling Indiana home, according to the Indiana Chamber of Commerce.
About Heartland Automotive
Heartland Automotive is a manufacturer of interior and exterior automotive parts. Our products include plastic molded, painted and assembled parts. These parts are used in instrument panels, door panels, consoles, pillars, head liners, aprons and rear gates and exterior cladding. The Heartland Team is committed to do our jobs right the first time in order to obtain the highest level of customer satisfaction. Through competence, customer focus, periodic reviews and commitment to comply with all requirements, we will continually improve the effectiveness of our quality management system and strive to meet and/or exceed customer expectations by supplying our product on time with zero defects. To learn more about Heartland Automotive, visit www.hauto.net.
Created in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Mike Pence. Victor Smith serves as the Indiana Secretary of Commerce and Eric Doden is the president of the IEDC.
The IEDC oversees programs enacted by the General Assembly including tax credits, workforce training grants and public infrastructure assistance. All tax credits are performance-based. Therefore, companies must first invest in Indiana through job creation or capital investment before incentives are paid. A company who does not meet its full projections only receives a percentage of the incentives proportional to its actual investment. For more information about IEDC, visit www.iedc.in.gov.
Source: Indiana Economic Development Corp.