Pierceton Shiloh Plant One Of Two In State To Be Expanded
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Staff Report-
PIERCETON – The $3.3 million renovation of the Shiloh Die Cast Midwest plant in Pierceton represents one of two Indiana facilities in which the Ohio-based company is investing. Shiloh Industries on Tuesday announced the renovation and purchase of new manufacturing equipment, to begin in 2016. By 2018 the Valley City, Ohio-based company expects to hire an additional 70 people for the Pierceton plant. Together with a plant in Auburn, the investments total $7.8 million and represent 150 new jobs in Indiana. Shiloh Industries acquired both plants – along with two others in Michigan and Tennessee – when it bought Revstone Transportation LLC subsidiary Contech Castings LLC for $54.4 million in August. The Pierceton facility performs aluminum die casting and machining of parts for vehicles. It has changed hands several times since its construction in 1997, noted George Robertson, president of the Kosciusko Economic Development Corp., in KEDCo’s own announcement of the investment. The facility aged and employment declined, most recently seeing 60 workers laid off last year, he said. “This was a manufacturing operation we almost lost,” Robertson is quoted as saying. “The State of Indiana has been very aggressive in offering incentive to keep this operation in Indiana.” In Shiloh Industries’ announcement, company President and CEO Ramzi Hermiz credited the Indiana Economic Development Corp. with enabling expansion at the Indiana plants. The increase in manufacturing capacity for lightweight materials will help meet demand from the auto industry, according to the company. As automakers face pressures to meet the federally mandated fleet average of 54.5 miles per gallon by 2025, aluminum is quickly becoming part of the lightweighting solution, the announcement states, noting that for every 10 percent reduction in vehicle weight, there is a 5 to 7 percent reduction in fuel consumption. “Indiana is well situated for us to serve our customers in the northern U.S. market, and Shiloh is committed to grow in Auburn and Pierceton,” Hermiz is quoted as saying. “One of the biggest challenges in the automotive industry is to reduce vehicle weight to meet fuel economy standards. That challenge is a big opportunity for Shiloh and our Indiana facilities as we continue to invest and upgrade in the latest lightweighting technologies. With this commitment to Indiana and advanced technology, we believe Shiloh will remain an employer of choice in the region.” Plant manager Randy Kinsey said they have already begun renovations and bringing in new equipment, which improved employee morale and saw an increase in orders, according to KEDCo’s announcement. Pierceton Town Council on Tuesday approved the first hearing for tax abatements for the company as it makes its investments. “The Town of Pierceton is pleased that Shiloh has chosen operations in Pierceton to expand production,” Mandy Espinoza, Pierceton council president, is quoted as saying in KEDCO’s release. “We are appreciative that this operation is committed to increasing employment and in making capital improvements to the facility. This operation is an important employer for the town of Pierceton and Kosciusko County.”
