Japanese and American partners in a compounding plant in Indiana plan to expand the facility.
Mytex Polymers US Corp. and Chemtrusion Inc. are requesting local tax incentives to help with the project. Jeffersonville City Council will consider the incentives on Feb. 2.
Chemtrusion and Mytex hope to invest about $7.6 million to expand compound production capacity in Jeffersonville. The project will create about 11 new full-time jobs representing annual payroll of $436,000 by 2016, according to a Jan. 28 news release from the Indiana Economic Development Corp.
The two companies employ a combined 170, of which 107 are Chemtrusion personnel in Jeffersonville.
The project should boost production capacity by about 25 percent as well as upgrade technology at the site. The partners plan to install new equipment, remove and relocate existing equipment, and expand rail storage and warehousing at the 245,000-square-foot operation.
“We are excited about the proposed expansion project and very pleased Mytex Polymers continues to place its confidence in Chemtrusion,” stated Chemtrusion President Scott Owens in a news release.
“We have experienced significant growth in automotive related sales during the last several years and look to capture continued growth in this segment,” explained Mytex President Masayuki Arai in a news release. Mytex is a subsidiary of Japan Polypropylene Corp., which is a joint venture between Mitsubishi Chemical Corp. subsidiary Japan Polychem Corp. and JNC Corp.
“A key pillar in our parent company's strategy is capacity expansion in North America, and Jeffersonville remains an attractive location, as it is centrally located amongst many of our automotive customers,” Arai added.
Chemtrusion and Mytex officials were unavailable to provide more detail on the expansion.
Indiana EDC is offering the partners up to $80,000 in tax credits conditional on job creation. At the Feb. 2 meeting, Chemtrusion and Mytex hope to find they are eligible for tax incentives amounting to $1.4 million for real property investment and $5.9 million in personal property investment.
Mytex, founded in 1987, compounds engineered polyolefins for auto parts, household appliances, recreational vehicles, industrial equipment and specialty packaging.
Chemtrusion, a subsidiary of Compounding Innovation Inc. of Houston, provides compounding services, including at the Jeffersonville operation.
Chemtrusion and Mytex have been partners in the Jeffersonville business since the site was founded in 1996.