GREENFIELD — Keihin IPT Manufacturing plans to invest about $17.5 million in new equipment for its Greenfield facility.
The new equipment will allow the automotive parts manufacturer to enhance its local operations at 400 W. New Road. Keihin has asked the city for an estimated $900,000 tax deduction over a 10-year period as it installs the new equipment, which will allow the company to manufacture a new fuel system for 2016 and later Honda models.
The new equipment will enable the manufacturer, which produces car parts for Honda, to assemble direct fuel injectors for car engines. Keihin already manufactures fuel injectors, but the direct injectors are the latest revolution in fuel delivery, Keihin representatives told Greenfield officials this week.
Keihin was one of the first large manufacturers to locate in Greenfield, establishing its plant in April 1988. The plant began producing parts for the 1990 Honda Accord on July 20, 1989, and over the years, the company has ramped up sales, employees and the size of its facility.
The company manufactures a variety of automotive components including intake manifolds, throttle bodies, fuel injectors and spool valves for variable cylinder management technology that improves fuel efficiency by reducing the number of engine cylinders engaged during driving.
Keihin has asked for a 10-year tax break on the new equipment, and the Greenfield City Council preliminary approved the tax abatement as part of a resolution stating the city supports the project.
The abatement phases in taxes on personal property over 10 years. During the first year, Keihin would get a 100 percent tax deduction on the new equipment. During Year 10, it will get only a 10 percent tax deduction.
Kuker said early estimates show Keihin will pay about $610,000 in taxes on the new equipment and will save about $910,000 during the abatement period.
Before the abatement can be officially approved, the city must conduct a public hearing on the matter. The public hearing is scheduled for Sept. 9, and final approval is expected to follow.
City officials say they’re happy Keihin has decided to expand its operations.
“We are pleased they are wanting to do more business here in Greenfield,” said city councilwoman Judy Swift.
According to paperwork filed for the abatement, the company is already working to order the new equipment. Officials expect to be using it in the next few months, and the fuel injectors will be installed in 2016 car models.
The city is pleased Keihin chooses to continue to do business in Greenfield, said Mayor Chuck Fewell.
“We certainly are excited. We’ll be watching,” he said.
Kuker said the community has benefited from Keihin’s presence in Greenfield the past 27 years and will continue to benefit in years to come. The manufacturer employs 65 local workers whose salaries equal about $3.6 million a year.
And the new equipment allows a manufacturer in Greenfield to do revolutionary automotive work, which he thinks is “very cool.”
“I love seeing businesses expand,” he said. “They’re a great company to work with.”
