One line of business and 82 jobs are being eliminated in a permanent closure of Mitsubishi Heavy Industries Climate Control’s Franklin plant.
That line of business has been active in Franklin since 1996, but is now leaving because contracts for the car air conditioner parts made at the facility have expired, said Bob Francis, general manager of administration for Mitsubishi Heavy Industries Climate Control.
The jobs are to be phased out over the course of 2021, with the first round of lay-offs slated for March 31, Francis said. Employees will be advised to seek help looking for work from the Indiana Department of Workforce Development, he said.
Though Climate Control is closing, Mitsubishi Turbo Engine America is remaining at the site in Franklin, Francis said. That business right now is going strong, he said.
Despite 82 jobs being lost, an estimated 114 employees will remain employed with Mitsubishi’s turbo engine arm, according to tax abatement compliance documents filed with the city.
Franklin officials and Mitsubishi employees have known these layoffs were coming for about one year, Francis said. Mitsubishi first met with Mayor Steve Barnett on the matter in March of 2020, he said.
The communication that the job losses were coming was helpful to both the city and employees, Barnett said. Though the job losses are unfortunate, Barnett is confident all displaced employees will be able to find a new job in Franklin, he said.
“Whenever you say you’re losing 82 jobs, there are other places they will be able to find a job,” Barnett said. “We’ve got places all over that are hiring and more are coming all the time.”
There are two active abatements for the turbo engine business expansion, but abatements for the air conditioning business have already expired, said Krista Linke, the city’s economic development director. Both abatements were granted in 2013 to expand the building and purchase equipment to produce the turbo engine components, city documents show.
The abatement was awarded to expand Mitsubishi’s Franklin facility by about 30,000 square feet and invest $8.7 million for equipment and construction costs to expand the facility, Linke said.
Mitsubishi was awarded 10-year personal property and real property tax abatements for the expansion and Indiana Economic Development Corp. also offered $100,000 in training grants and $600,000 in state tax credits.
The climate control business has had upturns and downturns over the years. In 2009 the Franklin location had 90 employees and hoped to expand to 228 with a 2015 expansion of that side of the business, according to tax abatement filings.
But that business never materialized and the company’s main client, General Motors, stopped putting in new orders, Francis said. Though the jobs numbers did not pan out, Mitsubishi offered higher wages than originally promised, abatement filings show.
The engine business has increased more than anticipated, however. Mitsubishi invested more than promised in the engine business expansion and delivered 41 more jobs than initially anticipated, filings show.
Even with the business closed, the city will still collect taxes on the building. The next occupant would not be able to take advantage of another tax abatement without additional investment, Linke said.
Both abatements will have its regularly scheduled yearly review in 2021 to determine if Mitsubishi is in substantial compliance with the promises made in the filing. Either way, taxes that are owed will still be paid, said Dana Monson, the city’s economic development specialist.
“A key point to remember is that the real property is still here and will still have taxes paid,” Monson said. “These are both almost at the end of their abatement cycle so they are paying more in taxes than they save.”
Even with this news and last year’s news that Cooper Tire was moving to Whiteland, Barnett said Franklin should come out ahead in terms of jobs with growth expected this year.
