Will hire 26 employees by 2017
CHARLESTOWN, Ind. (Sept. 17, 2015) — Magnolia Automotive Services, LLC, a minority-owned joint venture between James Group International and Toyota Tsusho America, Inc., will locate a new automotive supply chain operation at the River Ridge Commerce Center in Charlestown, Ind. Magnolia will invest $4.4 million in the project in the next five years and plans to hire 26 employees by 2017.
The facility will receive auto parts and components from more than one hundred North American suppliers, then sort and consolidate them into shipments sent to Toyota production facilities. Magnolia will focus on achieving just-in-time processes, which is a key foundation of the Toyota Production System (TPS). This will be Magnolia’s first automotive operation outside of Mississippi.
“We are very excited by this opportunity to locate a new facility in Charlestown, Ind. and to continue our strong partnership with Toyota,” said Lorron James, president of Magnolia Automotive Services. “Toyota has been highly supportive of Magnolia, as well as the entire minority business community, and we are truly honored to be chosen as one of their supply chain logistics providers. We believe that Indiana, and especially Southern Indiana will be a great place for us to expand our business with Toyota.”
With assistance from One Southern Indiana, the Economic Development Corporation offered Magnolia Automotive Services, LLC, up to $150,000 in conditional tax credits based on the company’s job creation plans. The tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. Magnolia Automotive Services’ location also affords them the opportunity to apply for benefits through the Urban Enterprise Zone, located in River Ridge Commerce Center.
“I couldn’t be happier to share the news about Magnolia coming to Charlestown, Ind.,” said Charlestown Mayor, Bob Hall, who also attributed the success in part to New Albany Mayor Jeff Gahan. “This is a big win for our community, and we’re eager to further the positive relationship we’ve begun with this company. Had Mayor Gahan not kept the dialogue going with company leaders, this project would have landed in an entirely other region or state.”