Tuesday, May 23, 2000
Brake plant might expand
Tax credits sought for Lebanon site
By Mike Boyer
The Cincinnati Enquirer
Sumitomo Electric Industries is considering its Lebanon brake operation for a major expansion, doubling the size of its anti-lock brake plant and adding 220 jobs.
The 11-year-old Lebanon plant, which was known as Lucas Sumitomo Brakes until Sumitomo bought out partner TRW Inc. earlier this year, employs 500. It produces both anti-lock brake systems and disc brake calipers for customers that include Ford Motor Co., Toyota, Honda and DaimlerChrysler.
“This would be the biggest expansion for us yet,” said Dave Bolton, senior vice president of administration. Since it opened in 1989, disc brake operations have expanded three times at the plant, and the anti-lock brake plant was added in 1996.
“ABS technology is changing quickly, and there's increased pressure on (suppliers) to reduce costs and improve functionality,” he said.
The Lebanon plant is vying with other Sumitomo operations in Kentucky and Michigan for the new investment. Mr. Bolton said it is estimated at $60 million; almost all of that would be for new machinery.
“Nothing's definite yet, but we're hopeful we'll get the project. Tax incentives will be an important part of the final decision,” he said.
The project cleared one hurdle Monday when Ohio's Tax Credit Authority approved a 70-percent, 10-year tax credit for the project.
The tax credit, which would require Sumitomo to maintain operations in Lebanon for 20 years, is contingent on the city of Lebanon and Warren County granting an Enterprise Zone tax credit for the project.
Karen Garrett, Warren County director of economic development, said her agency has had only preliminary discussions about the project with a consultant employed by Sumitomo.
“We're still talking with them about it, but nothing's been filed with us,” she said.
“Sumitomo's time frame is to make a final decision in six to eight weeks,” Mr. Bolton said, so construction work can begin yet this year.
Mr. Bolton said the expan sion would increase the size of the company's ABS plant from 70,000 square feet to 140,000 square feet.
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