COLUMBUS, Ind., May 20, 2015 /PRNewswire/ -- Faurecia Emissions Control Technologies (FECT), a global manufacturer of automotive emissions control systems with North American headquarters based in Columbus, Indiana, announced plans today to expand its operations here with a new production facility. The plan will create up to 131 new jobs.
"Indiana's robust manufacturing sector is one of the key drivers of our economy," said Governor Mike Pence. "To help this sector succeed in our state, we've worked hard to build a business-friendly environment, which includes the best workforce a company can have. Faurecia's decision to expand here in Indiana confirms the value our state offers businesses and reinforces the Hoosier State's status as an automotive manufacturing leader."
Faurecia will invest $61 million to equip an approximately 400,000-square-foot manufacturing facility adjacent to the company's existing Research and Development (R&D) Center. The company will allocate another $11.8 million to lease the state-of-the-art building, which will be used to produce a new line of emissions control systems for the automotive sector. Set on 36 acres of land purchased from the Columbus Board of Aviation, Faurecia expects to break ground on the new facility later this year.
The company, which currently employs 1,635 Hoosiers between its manufacturing and R&D Center operations in Columbus, plans to begin hiring for a variety of engineering and production positions in 2017.
"Faurecia is a proud member of the Columbus community and we're pleased to expand our already significant presence in the area with this new facility and new opportunities for local jobseekers," said Dave DeGraaf, president of FECT in North America. "While we considered several other communities for this new operation, our decision to continue to grow in Columbus is a direct result of both the quality of the skilled workforce here and the important considerations we've received from the state and city governments."
The FECT Business Group is the global market leader for light and commercial vehicles, offering advanced solutions for emissions control as well as acoustic treatment, weight reduction and exhaust heat recovery. FECT recognizes the importance of meeting environmental standards and has responded to the public's growing concerns with a comprehensive product portfolio, including catalytic converters, emissions control systems, mufflers, manifolds and complete exhaust systems.
The Indiana Economic Development Corporation offered Faurecia Emissions Control Technologies up to $1,500,000 in conditional tax credits based on the company's job creation plans. These tax credits are performance-based, which means until Hoosiers are hired, the company is not eligible to claim incentives. In addition, the IEDC will provide the city of Columbus with up to $250,000 in infrastructure assistance from the state's Industrial Development Grant Fund.
"The new facility planned by Faurecia Emissions Control Technologies will provide substantial employment opportunities for our community and reaffirms that the City of Columbus is a strong partner in helping local businesses grow," said Columbus Mayor Kristen Brown. "We greatly appreciate Faurecia's continued investment in our city."
The Columbus City Council approved the transfer and sale of Columbus Airport land to the company at the request of the Columbus Board of Aviation Commissioners, and with the support of the Columbus Economic Development Board, the Council also approved a 10-year tax phase-in for the initial $30 million facility investment and $61 million equipment investment.
"Columbus, Indiana, is very proud to be home to Faurecia's North American R&D Center for Emissions Control Technologies as well as their local production operations," said Tim Shuffett, Columbus City Council President. "I am sure I speak for all of the Council members in saying that we are exceptionally happy to support this expansion."
"Faurecia's investment will serve as a catalyst for even greater things to come to the surrounding area," added Jason Hester, executive director of the Columbus Economic Development Board. "We are tremendously grateful to the company for choosing Columbus, Indiana, for this project."
Faurecia is the world's sixth-largest automotive supplier, with four Business Groups: Automotive Seating, Emissions Control Technologies, Interior Systems and Automotive Exteriors. In 2014, the Group posted sales of $25 billion. As of December 31, 2014, Faurecia employed 99,500 people in 34 countries at 330 sites and 30 R&D centers. Faurecia is listed on the NYSE Euronext Paris stock exchange and trades in the U.S. over-the-counter (OTC) market.
In North America, Faurecia had sales of $6.2 billion in 2014. It employs more than 20,000 people at 47 locations in the U.S., Canada and Mexico.
The IEDC oversees programs enacted by the General Assembly including tax credits, workforce training grants and public infrastructure assistance. All tax credits are performance-based. Therefore, companies must first invest in Indiana through job creation or capital investment before incentives are paid. A company that does not meet its full projections only receives a percentage of the incentives proportional to its actual investment. For more information about IEDC, visit www.iedc.in.gov.
SOURCE Faurecia North America