Governor Mitch Daniels joined executives from Cummins, Inc. (NYSE: CMI) today to announce the company’s plans to expand its high-horsepower campus here, creating up to 290 new jobs by 2015.
Cummins will invest $219 million to add new warehouses, additional engineering and production test cells, a cylinder block line and parking for employees. The company will also construct a new office building that will house up to 500 associates and a new manufacturing facility for after-treatment components for high-horsepower engines.
“Cummins continues an impressive expansion in the Hoosier State and much of that stems from the strong international demand for products designed and built right here in Indiana,” said Daniels. “Once again, words cannot describe how thankful we are for Cummins and the investment it is making in the Seymour community.”
Cummins currently employs approximately 525 associates at its Seymour engine plant and more than 7,800 workers across the state. It will begin hiring new engineering and professional associates to support the company’s global high-horsepower business in Seymour this year.
"Cummins is excited about making further investments in southern Indiana to support our growing high-horsepower engine business,” said Rich Freeland, Cummins vice president and president of the company’s engine business. “A key aspect for choosing Seymour is the support from IEDC to provide funding for educational initiatives, which will help ensure the availability of a skilled workforce for many years to come."
As the largest independent maker of diesel engines in the world, Cummins had record earnings in 2011 and expects continued strong growth this year. The Fortune 500 company expects to reach $30 billion in sales and 18 percent in earnings before interest and taxes in 2015 with much of that growth coming from international markets.
The Indiana Economic Development Corporation offered Cummins, Inc. up to $250,000 in training grants based on the company’s job creation plans. These incentives are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The Indiana Department of Transportation will assist the city of Seymour with the completion of their gateway project. In addition, the city of Seymour will consider additional property tax abatement at the request of the Jackson County Industrial Development Corporation.
Cummins, a nearly century-old, Indiana-born company, designs, manufactures, sells and services diesel engines and related technology through its network of 600 company-owned and independent distributor facilities and more than 6,500 dealer locations in more than 190 countries and territories.
“We are proud to be able to partner with Cummins and the State to make this exciting project a reality,” said Seymour Mayor Craig Luedeman. “Cummins has been an outstanding partner as we work to grow our community.”
Today’s announcement marks Cummins’ fourth expansion project in southern Indiana in the past two years. Cummins recently announced two major expansions at its Columbus headquarters, creating a combined 950 new jobs. Also, in 2010, the diesel engine maker announced plans to add a new large engine platform at its Seymour plant, creating up to 150 new jobs by 2015.
Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Ind., (USA) Cummins employs approximately 44,000 people worldwide and serves customers in approximately 190 countries and territories through a network of more than 600 company-owned and independent distributor locations and approximately 6,500 dealer locations. Cummins earned $1.85 billion on sales of $18.0 billion in 2011. Press releases can be found on the web at www.cummins.com.
Created by Governor Mitch Daniels in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Daniels. Dan Hasler serves as the chief executive officer 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.