IN: Japan’s Largest Steel Producer Adding Operations in Shelby County
23 Jun, 2016
Governor Mike Pence and Shelbyville Mayor Tom DeBaun joined executives from Nippon Steel & Sumitomo Metal Corporation, Japan’s largest steel producer, as the company announced plans to establish operations in Shelbyville, creating up to 70 new jobs by 2021.
“Indiana’s business climate is attracting international investment, with 800 global corporations now supporting more than 150,000 Hoosier jobs across the state,” said Governor Pence. “Indiana is home to the largest Japanese investment per capita in the nation, and today I’m proud to welcome yet another Japan-based firm to the Hoosier state. Global firms like Nippon Steel & Sumitomo Metal Corporation continue to choose Indiana for growth and job creation because of our efforts to create an affordable, pro-growth economic environment while investing in our hardworking Hoosier workforce.”
The new company, Nippon Steel & Sumikin Cold Heading Wire Indiana Inc. (NCSI), will be a wholly owned subsidiary of Tokyo-based NSSMC and will invest $50 million to construct and equip a 150,000-square-foot facility at 400 Northbrook Drive. Adjacent to another NSSMC operation, Indiana Precision Forge, the company will process cold heading steel wire used for fastener applications by the automotive parts industry, producing 39,000 metric tons annually and serving manufacturers across Indiana, Ohio and Kentucky. The company broke ground on the new facility today and expects to be fully operational by the spring of 2018.
“This facility is the first U.S. production plant for the NSSMC Bar & Wire Rod Unit, already operating in Thailand and China, and we are excited to be locating in Indiana,” said Hideoki Kimura, president of Nippon Steel & Sumikin Cold Heading Wire Indiana. “High quality wire is essential to producing nuts, bolts and other fasteners used in cars and trucks to ensure the highest levels of safety. We chose Indiana and the Shelbyville community for this investment because of the central location, established manufacturing industry and the skilled workforce available.”
Nippon Steel & Sumikin Cold Heading Wire Indiana marks NSSMC’s fourth investment in Indiana, including Indiana Precision Forge, Seymour Tubing Inc., and IN/Tek and IN/Kote in New Carlisle. The company plans to begin hiring for administrative, customer service and sales positions in January 2017 and for manufacturing positions in late 2017. The company will lease office space at Intelliplex Business Park in Shelbyville until construction is complete.
Established in 2012 by the merger of Nippon Steel Corporation and Sumitomo Metal Industries, Ltd., NSSMC is the world’s second largest steel producer by volume, providing high-grade steel products for three main industries – automotive, resources and energy, as well as civil engineering, construction and railways. Headquartered in Tokyo, NSSMC employs more than 84,000 associates across the globe, operating nine research and development facilities and producing steel in 15 countries, including Japan, Australia, Brazil, China, Germany, India, Mexico, Singapore, Thailand, Vietnam, the UAE and the United States. In addition to NSSMC, several other Japanese companies are investing in Nippon Steel & Sumikin Cold Heading Wire Indiana including Toyota Tsusho, which has existing operations in Indiana.
“This project is a great example of the success a community can realize when all of the partners are working together for a common good,” said Shelbyville Mayor Tom DeBaun. “Shelby County Development Corporation, the city, the county and the state have all worked well together in this instance to bring another quality development and employment opportunities for the area residents. The investment in our community by NSCI is validation of the positive business climate in Shelby County.”
Today’s announcement comes on the heels of Governor Pence’s second economic development mission to Japan last fall, where he visited with representatives of NSSMC and the company’s joint venture partner, Toyota Tsusho. Among all U.S. states, Indiana has the largest amount of Japanese investment per capita with more than 250 Japan-based businesses. Together, they employ more than 53,680 Hoosiers and that number continues to grow.
Since January 2013 alone, nearly 40 Japan-based companies have committed to locating in or growing their operations in Indiana, with plans to create 6,050 new jobs in the coming years. Within the last year, Honda Manufacturing of Indiana in Greencastle announced plans to hire 100 new employees, NTN Driveshaft broke ground on a new facility in Anderson that will create 510 new jobs, and Subaru of Indiana Automotive announced expansion plans in Lafayette with plans to add 1,204 Hoosier jobs.
“Indiana is an ideal location for international investment, and specifically for Japanese businesses because of the strong relationship our countries share,” said Takashi Kusakabe, general manager of NSSMC Bar & Wire Rod Unit. “I want to thank Shelbyville and the state of Indiana, and specifically Governor Mike Pence and Mayor Tom DeBaun, for their support. We look forward to growing this partnership as we work to create more jobs for the people of Indiana.”
The Indiana Economic Development Corporation offered Nippon Steel & Sumikin Cold Heading Wire Indiana up to $475,000 in conditional tax credits and up to $140,000 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 city of Shelbyville will consider additional incentives at the request of the Shelby County Development Corporation.
The Indiana Economic Development Corporation (IEDC) leads the state of Indiana’s economic development efforts, focusing on helping companies grow in and locate to the state. Governed by a 12-member board chaired by Governor Mike Pence, the IEDC manages many initiatives, including performance-based tax credits, workforce training grants, public infrastructure assistance, and talent attraction and retention efforts. For more information about the IEDC, visit www.iedc.in.gov.