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South Charleston company set to expand, add nearly 60 jobs

15-year, 100-percent tax abatement approved for YAMADA North America.

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By Tiffany Y. Latta, Staff Writer Updated 9:33 AM Wednesday, October 26, 2011

SPRINGFIELD — An automotive supplier based in South Charleston received a tax abatement Tuesday that moves the company a step closer to expanding its operations and adding nearly 60 new jobs.

Clark County commissioners unanimously approved a 15-year, 100-percent tax abatement for YAMADA North America Inc., 9000 Columbus-Cincinnati Road.

The nearly $20 million project is expected to add 57 new full-time jobs to its current workforce of 309 full-time employees within three years, said T. Marcus Murray, vice president of YAMADA’s business planning and control division.

Murray said 47 of the new jobs will offer starting wages of $11 an hour and the remaining positions will pay $15 an hour.

The company also plans to expand its 236,000 square-foot facility by up to 90,983 square-feet, according to the agreement.

The project, however, is pending the approval of proposed state incentives in December as well as the approval of Honda, which is YAMADA’s main customer and part owner of the company, Murray said.

Murray said the project will allow YAMADA to expand operations by 28 percent and diversify the company.

“With this expansion, we’re looking to expand our base not only with Honda, but with other companies,” Murray said.

Commissioner John Detrick said the tax abatement was a collaborative effort of the county, Southeastern Local Schools and the Greater Springfield Chamber of Commerce.

Competition for the company has been tough between South Charleston, Canada and Japan, Detrick said, adding that keeping the company in Clark County increases the appeal of the area to businesses and residents.

“This just adds to our job growth and we’re going to be a go-to destination for people to find employment and hopefully relocate here for job opportunities,” Detrick said.

In exchange for the tax incentives, YAMADA will make payments to Southeastern schools equal to 50 percent of what they would have been paid overall in years six and 15 of the tax abatement, according to an Oct. 11 agreement with the school district.

If officials get approval for the project in December, construction would begin in April 2013 and the project would be completed in August of that year, Murray said.

The tax abatement is the latest in incentives YAMADA has received from the county in the last decade.

In 2003, the county approved a 10-year, 100 percent abatement that allowed the company to create 30 new full-time jobs and install new equipment, expand production and warehouse space, according to the agreement.

The 2003 tax abatement is set to expire Dec. 31, 2016, said Amy Donahoe, director of hiring and employer services of the Greater Springfield Chamber of Commerce.

YAMADA was founded in 1988 and began production in South Charleston in 1989.

The company develops and manufactures oil and water pumps, steering columns and drive shafts for Honda, which announced this week that it is expanding its Indiana and Marysville plants.

Murray said that while the company’s main customer is Honda, officials recently began supplying parts to companies in Brazil.

Mike McDorman, president and CEO of the Greater Springfield Chamber of Commerce, said the expansion is great for the region.

“YAMADA’s willingness to invest significantly in their Clark County facility speaks to the importance of our proximity to Honda’s manufacturing plants and to the quality of the workers they are trying to retain and attract,” McDorman said.

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