New Automotive Supply Chain Operation coming to Charlestown
Governor Mike Pence joined executives of Toyota Tsusho Corporation in Nagoya, Japan, today as the company announced plans to locate a new automotive supply chain operation in Charlestown, Indiana. The facility will be home to Magnolia Automotive Services, LLC, which is an affiliate of Toyota Tsusho America Inc., and create up to 26 new jobs by 2017.
“As a state, we have worked hard to create a business-friendly environment that encourages growth and attracts new jobs to Indiana,” said Governor Pence. “We cut taxes and reduced burdensome regulations while investing in vocational training and quality of life initiatives to attract new talent to the state. And I’m proud to say those efforts are being recognized by companies like Magnolia Automotive Services that choose to create jobs here in the Hoosier State when faced with a world of options.”
Magnolia will invest $4.4 million to establish a new facility at River Ridge Commerce Center in Charlestown. This project, which is an expansion of an ongoing joint venture between James Group International Inc. and Toyota Tsusho America, will result in Magnolia’s first automotive industry facility outside Mississippi. The new Hoosier facility will serve as a key distribution center, supplying automotive parts and components from more than 100 suppliers in North America to various Toyota production facilities.
Magnolia, which is a certified Minority Business Enterprise (MBE), will begin for hiring immediately. Interested applicants may apply by sending a resume to human resources, indicating MAS on the subject line.
“We are all very excited and happy to be able to locate a new facility in Charlestown, Indiana, and to continue our strong relationship with Toyota Motor in a new capacity as one of their supply chain logistics providers," said Lorron James, president of Magnolia Automotive Services. "Toyota has been highly supportive of Magnolia, as well as the entire minority business community, and we are truly honored to have this opportunity as Indiana is a great place to do business."
Japan-based Toyota Tsusho provides logistics, manufacturing, supply and technical support to Toyota Motor Manufacturing, and already supports several Hoosier operations, including facilities in Columbus, Lafayette and Princeton.
The Indiana Economic Development Corporation offered Magnolia Automotive Services, LLC up to $150,000 in conditional tax credits based on the company’s job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. Magnolia Automotive Services’ location also affords it the opportunity to apply for benefits through the Urban Enterprise Zone, located in River Ridge Commerce Center.
“I couldn’t be happier to share the news about Toyota Tsusho coming to Charlestown. This is a big win for our community and we’re eager to further the positive relationship we’ve begun with this company,” said Charlestown Mayor Bob Hall, who attributed the success in part to New Albany Mayor Jeff Gahan. “I also give a lot of credit to Mayor Gahan and the city of New Albany for keeping Southern Indiana in the hunt for this project when company leaders were on the verge of going in another direction. Had Mayor Gahan not kept the dialogue going with company leaders, this project could have landed in an entirely other region or state.”
Exporting roughly $1.6 billion of Hoosier-made goods to Japan each year, Indiana counts Japan as its largest Asian trading partners and third-largest export country in the world. Indiana is the only U.S. state that is home to three Japanese original equipment manufacturer (OEM) automotive companies: Honda, Subaru and Toyota.
"The Indiana Economic Development Corporation has played a very important role in bringing Magnolia to Indiana," said James. "We are also very appreciative of the local economic development organizations for their assistance. In particular, we want to thank the Mayor of Charlestown, along with other local government representatives who have extended every courtesy to us and greatly influenced our decision to locate here, as well as offering their continued support during the development and implementation of this project. We look forward to being a strong member of the Charlestown community and a good corporate citizen of Indiana.”