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Subaru Ascent to send Chiyoda job ranks soaring
The more the massive Subaru plant at Lafayette grows, the more the Greencastle Chiyoda USA plant prospers.
So it’s no surprise that when Subaru ramps up production of the company’s newest nameplate -- the three-row crossover Ascent -- starting this May in Tippecanoe County, auto parts supplier Chiyoda will be hopping with a new production line here in Greencastle as well.
“Chiyoda is a Tier I supplier to Subaru at Lafayette,” Greencastle/Putnam County Development Center Director Kristin Clary told the City Council at its February meeting.
“We have seen tremendous growth in our Tier I suppliers due to Subaru’s growth,” Clary added, noting that Chiyoda is “looking to expand not its footprint but just the machinery and equipment inside the facility.”
Thus Chiyoda will be in front of the City Council for a public hearing at its March meeting (7 p.m. Thursday, March 8 at City Hall) to formally request tax abatement at the phased-in level on that new equipment necessary to meet Subaru’s needs.
At the February meeting, the Council passed a resolution declaring the 39-acre Chiyoda property an Economic Revitalization Area, making it eligible to apply for tax abatement.
Subaru’s Lafayette plant underwent a $140 million expansion to get ready to produce the Ascent with an estimated annual output of 400,000, according to the weekly publication Automotive News.
Originally 2.3 million square feet when it opened as Subaru-Isuzu Automotive Inc. (SIA) in September 1989, the Lafayette plant now covers 4.4 million square feet. While the number of employees at the Subaru facility was originally expected to reach 3,000, once Ascent production begins, that number will top 5,800.
At the Council meeting, the Chiyoda discussion took over on somewhat off a tangent after Council President Adam Cohen first asked Clary about salaries for the 60 new positions “to get a feel for their wage structure.”
Clary said the salaries would be difficult to pinpoint since the positions might involve several levels of workers.
She said the jobs will likely pay “around $24,000 annually,” depending on what type of job it as. She estimated $12 an hour to start.
Cohen also wanted to make sure Chiyoda and other plants would not be dissuading the use of Putnam County Hospital as a provider for employees’ health care plans.
“I’m not saying you have to go to Putnam County,” Cohen said, “but it’s important that our employers in town make sure we support and are keeping the hospital strong, not just sending all the business out of town.”
“People should be able to go where they want (for health care), absolutely,” he added, “but to me, making sure Putnam County is at least an option is to me, in the very least, important.”
Councilman Gary Lemon asked for clarification on the sudden line of questioning from his colleague.
“Are we going to say no (to the abatement) if it doesn’t meet certain standards?” he asked, alluding to the promise of jobs previously being the motivating factor.
“When we asked the other questions about civic engagement,” Cohen responded, “we didn’t say we were going to say no, but I think there are certain things companies can do to support our community when they’re coming to ask us (for abatement). Shining some light on that, I think, is a good thing.”
Cohen said he was less concerned about the wage scale “because the market drives that,” but had begun to “sense and see some movement” from some employers pushing their health care providers out of town.
“I’m not sure that for long-term economic development that that’s healthy for us.”
Cohen added that he had not held any discussions with hospital officials about the issue, “but I do think maintaining a strong, local hospital is important for economic development.”
Mayor Bill Dory, who was in charge of the Greencastle/Putnam County Development Center when the line of questioning about community involvement went into vogue, said the City Council started asking such things “not really for a yes or no. It was just to help gain a better understanding of how companies operate and things of that nature.”
That makes sense, Councilman Lemon said agreed.
“Everything else equal,” Lemon said, “you obviously want companies that are engaged and doing things.
“I’m going to vote yes or no -- well, yes -- because they’re going to bring jobs.”
“We’ve never voted no,” Cohen reminded.
“I know,” Lemon said. “So if you get me more information, I’m not sure how I’m going to process it.”
Dave Murray interjected another thought into the discussion.
“I hear Adam saying, ‘We’re not requiring anybody to use (Putnam County Hospital) but it darn well should remain a health care option. If not, I’ve got an issue with that company.
“For good economic development and community development,” he added, “you’ve got to have good schools and good, affordable health care ... local health care.”
Development Center Director Clary assured the Council that Putnam County Hospital “has engaged in some really healthy conversations with many of our major employers,” especially while in support of the Healthy Indiana Initiative last year.
“So there’s definitely a relationship,” Clary added. “But there’s nothing to say we can’t always reinforce that and continue to encourage it.”
Council President Cohen again said he’s never voted no on tax abatement, “but I want to cast an eye on it, that’s all.”
With that, the economic revitalization area resolution was passed unanimously following a motion by Steve Fields.