Economic Development Futures Journal

Tuesday, September 09, 2003

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Yamada North America: Is It Ohio or Alabama?

Japanese companies ARE expanding across the U.S. If you haven't noticed, please take note of Honda in Alabama, Toyota in Texas and Nissan in Tennessee.

A Clark County Ohio-based automotive supplier will receive tax credits for a planned expansion, although the company still hasn't decided if its expansion will happen in Ohio. Yamada North America, which manufactures steering racks, pinions and other parts in the village of South Charleston, has been in talks with both Ohio and Alabama regarding a proposed 47,000-square-foot building addition to house new drive shaft and die cast lines.

The $8.9 million project is expected to create 30 jobs within the first three years of operation and retain 272 jobs, according to a news release by the Ohio Department of Development. The department awarded Yamada a 55 percent, 10-year tax credit toward the project.

Company spokesman Alan Handy said while a final decision has not been made about the expansion. But whatever scenario works out, Yamada most likely will keep its main operations in South Charleston. "The bottom line is we're not really strongly considering relocating operations," he said.

Competition for the expansion, though, is heavy between South Charleston and Lincoln, Ala., where the company's main customer, Honda, recently built a plant. The Honda tie here is important.

Read more here.

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