IN: Two Italian Co’s Choose IN for North American Operations
19 Jan, 2015
Governor Mike Pence joined executives from Sirmax North America, Inc., an Italy-based global supplier of plastic compounds and resins, in Detroit to announce the company’s plans to locate its first North American facility in Anderson, Indiana, creating up to 50 new jobs by 2020.
“Sirmax is joining the ranks of leading automotive companies who have chosen to grow in Indiana out of a world of options,” said Pence. “Meeting today with leaders at Sirmax and with leaders from other international automotive companies at the North American International Auto Show, it’s clear why they keep choosing Indiana. Entering a new international market can be difficult, but with Indiana’s business climate built for their growth and a workforce that knows its way around building cars, Hoosiers help keep the world moving.”
The Cittadella, Italy-headquartered company will invest $25.6 million into its new Anderson operations, building a 140,000 square-foot facility on a 26.3 acre portion of the former General Motors property, which is owned and marketed by RACER Trust. The investment will also go toward installing equipment based on best practices developed at the company’s facilities around the world. Expected to be operational by October 2015, the company’s first North American location will serve as a strategic logistical location for its automotive and appliance customers, which includes a U.S.-based client that signed a $20 million annual contract with Sirmax late last year. The company anticipates producing 20,000 tons of plastic compounds and resins a year in Anderson, with an annual turnover expected at $35 million.
With 200 employees located across its European and South American locations, Sirmax will begin to hire engineers, administrators, machine operators, quality control professionals, skilled equipment mechanics and production line associates for its Anderson location beginning in September 2015.
Founded in 1964 under the name SIRTE, Sirmax produces and supplies plastic compounds and resins used in the automotive, home appliance, electrical and furniture industries. As the second-largest independent polypropylene compounder in Europe, the company’s products include polypropylene compounds used in automobile interiors, exteriors, under-the-hood as well as in household appliances including components for washing machines, dishwashers, dryers, refrigerators and freezers. Launching a global strategy in 2005, Sirmax operates five manufacturing and sales facilities across the globe, including three in Italy, a facility in Poland and a facility in Brazil, in addition to sales subsidiaries in Germany, France and Spain.
The Indiana Economic Development Corporation offered the city of Anderson up to $600,000 in infrastructure assistance from the state's Industrial Development Grant Fund. The city of Anderson will consider additional property tax abatement.
Sirmax is the second company in one day to announce plans it will locate its first North American operations in Indiana. Earlier in the day, Pence joined executives from Brescia, Italy-based OMR Automotive, announcing the company’s plans to locate its North American headquarters in Speedway, creating up to 60 new jobs for Hoosiers. This comes amid Pence’s one-day economic development and jobs mission to the North American International Auto Show held in Detroit, where he is sharing Indiana’s story as a state that works with executives representing some of the biggest names in the automotive industry.
On the same day, Governor Mike Pence joined executives from Brescia, Italy-based OMR Automotive, a tier 1 automotive supplier for the Fiat Group, in Detroit to announce the company’s plans to locate its North American headquarters in Speedway, Indiana, creating up to 60 new jobs by 2016.
OMR Automotive will invest $10 million to construct a 43,000 square-foot facility on its 2.5-acre campus located at 4755 Gillman St. in Speedway, which includes the installation of new equipment and advanced manufacturing technologies. The company also purchased an additional 2.5 acres located at 4743 Gillman St. for future expansion. As OMR’s fifth location outside of Italy, the company expects to begin construction on its Speedway facility by April, with operations launching by the end of the year. The operation will house the company’s machining and assembling of automotive components for engines, transmissions and chassis.
“Indiana stands out as the ideal place for our North American home base, situated in Speedway, a town known the world over for its legacy in auto racing,” said Marco Bonometti, chairman of OMR. “Our team looked across the region for a place that would maximize growth opportunities for our world-class manufacturing operations, building parts in cars on roads all around the world today. We were impressed with the tax structure and affordable business climate in Indiana, and look forward to a long future here.”
Employing more than 1,800 associates in Italy and 1,200 around the world, the company will begin hiring engineering, administration, production line and quality control professionals as well as machine operators and skilled equipment mechanics in Speedway by the end of the year.
Established in 1919 and still 100 percent owned by the Bonometti family, OMR is a tier 1 components supplier of engines, suspensions, gears, braking systems, chassis and integrated systems for the automotive industry. With 10 locations in Italy, as well as locations in India, China, Brazil and Morocco, the company is a worldwide supplier for original equipment manufacturers in the Fiat Chrysler Group including Fiat, Lancia, Alfa Romeo, Chrysler, Jeep, Ferrari and Maserati. The company also serves automotive customers including General Motors, Volkswagen, Ford and Toyota.
“Given the town of Speedway’s racing history and automotive roots, it is a complete privilege to welcome such a well-known and successful international industry leader to open its first and only headquarters in North America,” said David Lindsey, Speedway Town Council president.
The Indiana Economic Development Corporation will provide the Speedway Redevelopment Commission with up to $1,000,000 in infrastructure assistance from the state's Industrial Development Grant Fund. The town of Speedway and Speedway Redevelopment Commission will consider additional tax abatement.
Today Pence is leading a one-day economic development and jobs mission to the North American International Auto Show in Detroit, where he is sharing Indiana’s story as a state that works with executives representing some of the biggest names in the automotive industry. The Indiana automotive industry produced more than 1.1 million cars and light trucks in 2013 and ranks second in the nation for automotive gross domestic product. Vehicle and automotive parts exports remain Indiana’s largest export industry, ranking it in the top five exporting states of motor vehicle parts and accessories in the United States.
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.