Employs more than 170
FRANKFORT, Ky. (July 7, 2016) — India-based Rane (Madras) Ltd. plans to invest $5.8 million in new equipment, tooling and upgrades at Russellville automotive supplier Precision Die Casting to retain more than 170 jobs at the company it purchased in February.
Rane Precision Die Casting manufactures high pressure aluminum die-cast steering and compressor components for the automotive industry. Its customers include automotive suppliers TRW, Nexteer Automotive, Mahle and JTEKT. The investment planned will cover the costs of new tools, machinery and refurbishment of existing equipment. Company leaders expect this to increase efficiency and machine uptime while lowering costs by reducing scrap.
“Rane’s recent investment in Logan County brings a welcome lift to southcentral Kentucky,” said Gov. Matt Bevin. “It demonstrates the impact that economic developers can have when matching the interests of local and international companies. Rane Precision Die Casting’s investment will fuel the continued growth in our automotive industry and provide quality jobs for the region. We are grateful for their longstanding commitment to manufacturing in Kentucky.”
Founded in 1956 as a captive die caster for Rockwell Corp., Precision Die Casting was sold in 1989. That began a string of ownership and name changes culminating with Rane (Madras) purchasing the company early this year.
Rane (Madras), based in Chennai, India, is part of Rane Group, a leading global supplier of Steering and Suspension systems, friction materials, valve train components, occupant safety systems, die-casting products and aerospace-grade wiring harnesses.
To encourage the investment and job retention in the community, the Kentucky Economic Development Finance Authority in June preliminarily approved the company for tax incentives up to $1.2 million through the Kentucky Reinvestment Act. The performance-based incentive allows the company to keep a portion of its investment over the agreement term through corporate income tax credits by meeting job retention and investment targets.
In addition, the company can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies are eligible to receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. Last year, the Kentucky Skills Network trained more than 84,000 employees from more than 5,600 Kentucky companies.