GKN Sinter Metals, part of global engineering group GKN (IW 1000/466), and a manufacturer of precision powder metal products, is planning a $10 million expansion of its U.S.-based Gallipolis production facility in southeastern Ohio’s Gallia County.
The plant which is estimated to generate up to $20 million in additional sales in the next two to three years will add 50 full-time jobs.
The expansion will include the installation of a new 750 metric-ton, powder-compaction press along with other capital equipment to launch production of differential-gear components developed at the plant.
The 175,000-square-foot facility currently has more than 160 employees and produces gears, clutch pressure plates and torque-converter components for a variety of customers, including Chrysler, General Motors, EXEDY, LuK USA and Allison Transmission.
Production of the new components is expected to begin during the second half of 2013.
“The untiring support that we’ve received from the community and all levels of government has made this program possible,” said plant manager Matt Daniels.“We are eager to install this new equipment and to begin production based on the new technology that’s been developed here in Gallipolis.”
GKN Sinter Metals received tax credits and development grants valued at nearly $800,000 to assist with the Gallipolis project from various state and local agencies. The State of Ohio awarded GKN a Job Creation Tax Credit and an Economic Development Grant with a combined worth of $380,000.
The Southern Ohio Agriculture and Community Development Foundation also provided a $350,000 development grant. Local incentives included a City of Gallipolis Job Creation Tax Credit and a Gallia County Community Improvement Corporation Economic Development Grant with a total value of $60,000.