Magna Powertrain expands, adds jobs
By Rick Yencer
MUNCIE, IN - Magna Powertrain that does business with General Motors, Chrysler and Allison is expanding and creating 21 new jobs.
And Delaware County Council offered its support to the $10 million project by granting property tax abatement on a 50,000 square foot expansion and $8.9 million in new forging equipment and laser welders. The company came to Muncie in 2004 and built a plant ay 4701 S. Cowan Road on the edge of the southside Industrial Centre.
Steve Brand, Magna general manager, explained the company was moving its warehouse out of the plant and installing equipment to increase component production for its group of auto makers.
The company currently employs 326 people with 287 that are fulltime and posts about $7.7 million in salaries. With an extra 21 positions,that would amount to $655,000 in extra salaries, Magna hopes to keep its workforce around 300 fulltime production workers.
Terry Murphy, vice president of economic development for the Muncie-Delaware County Chamber of Commerce, said Magna had invested more than $100 million in the community with the plant and its production. It is similar in size to Keihin North American that is a parts supplier primarily for Honda.
Brand said the company had not been impacted by changes in the stock market or other foreign economic conditions.
Murphy anticipated the expansion would ultimately resulted in $126,000 in new property taxes once the abatement ends. The last personal property assessment for Magna was $13.2 million and the company paid $118,839 in property taxes last year.
Council member Ron Quakenbush who historically does not support tax abatement on property made an exception, given Magna's growth and contribution to the economy. He also disclosed earning money from the company as a stockholder and voted in favor of the tax incentive along with other council members.