TRW expanding in Fayette 02.09.2011

Written by David Green.

Fayette’s TRW plant is expected to remain in operation for at least the next seven years following the approval of a tax credit plan through a state program.

The Fayette plant—operating as a subsidiary of Kelsey-Hayes—is TRW’s largest remaining operation in Ohio.

The state’s Job Creation Tax Credit program is listed as a major factor in Kelsey-Hayes’ decision to rebuild and expand in Fayette. The project will stabilize the employment of 149 existing full-time jobs “for the foreseeable future” and create 24 new jobs.

The project includes dismantling and rearranging seven existing production cells at the plant to create space for a new high volume production line for new business.

In addition to the existing 162,000 square foot facility, between 22,200 and 44,400 square feet will be rented at the Fayette Industrial Park (former Fayette Tubular Products building). One employee will work at this location to keep the main plant supplied with raw material and packing material.

The project represents an investment of $4 million, with more than $3 million in new machinery. New employees will include CNC machine operators and administrative staff. The average wage is listed at $14.36 an hour plus $8.02 an hour in benefits.

Within three years, additional payroll from the new employees will reach $717,000 annually.

The Ohio Tax Credit Authority approved a 35 percent, seven-year tax credit to Kelsey-Hayes. As part of the tax credit agreement, the Authority requires the company to maintain operations in Fayette for at least seven years.

Kelsey-Hayes will claim the tax credit on income tax revenue generated at the Fayette plant in excess of the company’s baseline income tax revenue, a figure that will increase annually by 2.6%.

A press release states that “the Village of Fayette has expressed its support for the proposed project with an anticipated five-year, 25 percent tax incentive on the 24 new positions created by this expansion,” however, the proposal has not yet been discussed at a council meeting.

Village administrator Amy Metz said the incentive would result in an income tax revenue loss of about $2,700 in each of the next five years. Metz explained that the income tax credit was recommended by the Fulton County Economic Development office because it shows a commitment by the village while affecting only the village. A tax abatement, on the other hand, would have an impact on school funding.

Kelsey-Hayes

Kelsey-Hayes was originally formed in 1927 as the result of a merger of the Kelsey Wheel Company and the Hayes Wheel Company.

Kelsey-Hayes manufactures and markets automotive brake parts. The company’s products include anti-lock braking systems (ABS), disc and drum brakes, disc brake rotors, hubs and drums. It caters to passenger cars and light trucks.

The company operates as a subsidiary of TRW Automotive Inc. With 2009 sales of $11.6 billion, TRW Automotive ranks among the world’s leading automotive suppliers. TRW Automotive products include integrated vehicle control and driver assist systems, braking systems, steering systems, suspension systems, occupant safety systems (seat belts and airbags), electronics, engine components, fastening systems and aftermarket replacement parts and services. Through its subsidiaries, Kelsey-Hayes operates in 26 countries and employs more than 60,000 people worldwide.

  • Front.sculpta
    SCULPTORS—Morenci third grade students Emersyn Thompson (left) and Marissa Lawrence turn spaghetti sticks into mini sculptures Friday during a class visit to Stair District Library. All Morenci Elementary School classes recently visited the library to experience the creative construction toys purchased through the “Sculptamania!” project, funded by a Disney Curiosity Creates grant. The grant is administered by the Association for Library Services to Children, a division of the American Library Association.
  • Funcolor
    LEONIE LEAHY was one of three local hair stylists who volunteered time Friday at the Morenci PTO Fun Night. Her customer, Aubrey Sandusky, looks up at her mother while her hair takes on a perfect match to her outfit. Leahy said she had a great time at the event—nothing but happy clients.
  • Shadow.salon
    LEARNING THE ROPES—Kristy Castillo (left), co-owner of Mane Street Salon, works with Kendal Kuhn as Sierra Orner takes a phone call. The two Morenci Area High School juniors spent Friday at the salon as part of a job shadowing experience.
  • KayseInField
    IN THE FIELD—2004 Morenci graduate Kayse Onweller works in a test plot of wheat in Texas. She’s part of Bayer CropScience’s North American wheat breeding program based in Nebraska, where she completed post-graduate work in plant breeding and genetics.
  • Front.winner
    REFEREE Camden Miller raises the hand of Morenci Jr. Dawgs wrestler Ryder Ryan as his opponent leaves the mat in disappointment. Morenci’s youth wrestling program served as host for a tournament Saturday morning to raise money for the club. Additional photos are on the back page.
  • Front.bank.2
    SHERWOOD STATE Bank opened its Fayette office at a grand opening Friday morning, drawing a large crowd to view the renovated building. Above, Burt Blue talks to teller Cindy Funk, while his wife, Jackie, looks around the new office. The Blues missed the opening and took a quick tour on Tuesday. Few traces remain of the former grocery store and theater, however, part of the original brick wall still shows in the hallway leading to the back of the building. The drive-through window should be ready for customers later in the month.
  • Front.carry.casket
    CARRYING—Riley Terry (blue jacket) and Mason Vaughn lead the way, carrying an empty casket outside to the hearse waiting at the curb. Morenci juniors and seniors visited Eagle Funeral Home last week to learn about the role of a funeral director and to understand the process of arranging for a funeral.
  • Front.make.three
    FROM THE LEFT, Landon Wilkins, Ryan White and Logan Blaker try out their artistic skills Saturday afternoon at the Morenci PTO’s first Date to Create event. More than 50 people showed up to create decorated planks of wood to hang from rope. The event served as a fund-raiser for miscellaneous PTO projects. Additional photos are on the back of this week’s Observer.

Weekly newspaper serving SE Michigan and NW Ohio - State Line Observer ©2006-2016