Japan’s largest steel producer announced plans Tuesday to open a subsidiary in Shelbyville that will build a $50 million manufacturing facility employing up to 70 workers by the end of 2021.
Tokyo-based Nippon Steel & Sumitomo Metal Corp., or NSSMC, said the new business will be called Nippon Steel & Sumikin Cold Heading Wire Indiana Inc., or NCSI.
The 150,000-square foot facility, to be constructed at 400 Northbrook Drive, is expected to be fully operational by spring 2018. The location is adjacent to another NSSMC operation—Indiana Precision Forge.
NCSI said it plans to begin hiring for administrative, customer service and sales positions in January 2017 and for manufacturing positions in late 2017.
The new plant will process steel wire used for fastener applications by the automotive parts industry.
“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 NCSI, in a written statement. “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.”
Gov. Mike Pence and Shelbyville Mayor Tom DeBaun were scheduled to join company executives at the announcement late Tuesday morning.
In addition to the new subsidiary and Indiana Precision Forge, NSSMC operates Seymour Tubing Inc. in Seymour and and IN/Tek and IN/Kote in New Carlisle.
The Indiana Economic Development Corp. offered NCSI up to $475,000 in conditional tax credits and up to $140,000 in training grants based on the job-creation plans. The incentives hinge on the company’s ability to meet the hiring commitments.
The city of Shelbyville will consider additional incentives at the request of the Shelby County Development Corp.
NSSMC has more than 84,000 employees worldwide who operate nine research and development facilities and produce steel in 15 countries.
IEDC officials said Pence met with NSSMC representatives in September during one of two trade missions he’s taken to Japan since taking office.
Among all states, Indiana has the largest amount of Japanese investment per capita with more than 250 Japan-based businesses. In total, they employ more than 53,680 Hoosiers, the IEDC said.
Since January 2013, nearly 40 Japan-based companies have decided to locate or grow operations in Indiana, with plans to create 6,050 new jobs, the IEDC said.
Major Japanese companies in Indiana include Honda Manufacturing in Greensburg, NTN Driveshaft in Anderson and Subaru of Indiana Automotive in Lafayette.
“Indiana is an ideal location for international investment, and specifically for Japanese businesses, because of the strong relationship our countries share,” Takashi Kusakabe, general manager of NSSMC Bar & Wire Rod Unit, said in a written statement.