ANDERSON – A sister company to NTN Driveshaft will make a $98 million investment in Anderson that will bring 198 jobs to the city.
Anderson city officials will announce this morning that NTK Precision Axel Corp. will build a 300,000 square foot facility to the west of the NTN Driveshaft building near 73rd Street and Layton Road.
NTK hopes to start production at the Anderson facility in October 2018. The last of the 198 jobs are expected to be created by 2021.
The company, which has a production facility in Frankfort, will be making drive-shaft component parts in Anderson that will be used at the NTN Driveshaft facilities in Anderson and Columbus.
The projected annual payroll for the NTK plant in Anderson is $7.2 million.
The city of Anderson is providing an incentive of $1.6 million from Tax Increment Financing revenues for NTK to purchase 40 acres from NTN.
The Anderson city council will be asked to approve a 70 percent abatement on real and property taxes for 10 years. After 10 years, the city would collect 100 percent of assessed taxes.
It has been estimated by the Anderson Economic Development Department that NTK will pay $7 million in property taxes during the abatement period.
“We are very excited about NTK becoming part of our community and bringing employment opportunities for our citizens, but it was also important that they contribute to our community through the payment of taxes,” Anderson Mayor Thomas Broderick Jr. said. “I am pleased that the agreement will allow the city to begin receiving taxes the first year after the assessment.”
As part of the agreement, NTK will provide 10 internships to Anderson city high school students and two scholarships for city high school students wishing to attend Anderson University, Purdue University College of Technology or Ivy Tech Community College.
The Indiana Economic Development Corporation will offer NTK $1 million in conditional tax credits based on the company’s plan to have 140 jobs in place by 2020.
“Here in Indiana, we are home to the highest concentration of manufacturing jobs in the nation because our state has worked hard to build a pro-growth business climate,” Jim Schellinger, Indiana Secretary of Commerce, said. “Global companies like NTK are choosing Indiana because we offer a low-cost, low-tax, limited-regulation environment with a workforce that is second to none.”
NTK is a join partnership of NTN USA Takao Kogyo -- an international company related to precision machining of power train parts -- and Neturen USA.