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 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.

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