BorgWarner Inc. plans to close two technical centers in central Indiana and consolidate them into a newly constructed $15 million facility in Noblesville that will house more than 300 high-wage employees, the Hamilton County city announced Wednesday afternoon.
The Auburn Hills, Michigan-based company said its plans to begin transferring operations from facilities in Anderson and Pendleton after the 100,000-square-foot, two-story facility in Noblesville is completed early next year. Construction is expected to begin in June.
The building, to be located on the southeast corner of 141st Street and Olio Road, will be used for research, development and testing, and to generate propulsion-system products for combustion, hybrid and electric vehicles. Product lines include starters, alternators and electrification technologies.
The company said it plans to spend an additional $13 million to buy machinery and equipment that will be installed in the center over the next five years.
Employees at the facility will include engineers, designers, technicians and office personnel.
The city of Noblesville said it has offered to spend $3.8 million toward the costs of land acquisition, construction and equipment. The city also plans to reimburse the company $309,000 for road and sewer impact fees.
In addition, Noblesville said it will make improvements to 141st Street, build a private road south from 141st Street, extend sanitary sewer and storm water systems, and construct a detention pond.
Noblesville said it will issue a bond to fund those costs. “Real and personal property taxes generated from the project will substantially fund all of the payments to repay the bond,” the city said in a written statement.
The yet-to-be-approved development agreement is expected to be heard by the Noblesville Common Council on May 9.
Borg Warner said it employs about 325 people at leased facilities in Anderson and Pendleton. The company said it will honor the leases, which expire in Pendleton at the end of 2018 and in Anderson at the end of 2020.
“Consolidating our engineering and testing under one roof is just the beginning,” said Stefan Demmerle, president and general Manager of BorgWarner PowerDrive Systems, in written comments. “Like other BorgWarner technical centers, the new facility will feature an open-concept design with interactive office environments and spontaneous collaboration zones to improve efficiency, enhance communication and inspire innovation.”
“BorgWarner is committed to our technical center colleagues and Indiana,” he added. “Noblesville is a highly desirable area that is centrally located for our current workforce and will also help us attract new employees as we continue to grow.”
With manufacturing and technical facilities in 62 locations in 17 countries, BorgWarner has about 27,000 employees worldwide.
Borg-Warner Corp. was formed in 1928 by the merger of Warner Gear, through the merger of Muncie-based Warner Gear, Borg & Beck, Marvel Schelber Carburetor Co. and Mechanics Universal Joint Co. The company has a long history of involvement in auto racing. The Borg-Warner Trophy has been presented to the winner of the annual Indianapolis 500 since 1936.
The company acquired Pendleton-based Remy International in 2015 for about $950 million.