A new product line to supply major manufacturers of electric cars is in the works at Essex Furukawa’s Franklin plant.
The company is requesting a $135,800 personal property tax abatement to facilitate the purchase of $3 million in manufacturing equipment for the new product.
Essex Furukawa, a global wiring manufacturer, has been in business since 1896, and has operated its Franklin magnet wire plant since 1993, said Jerardo Cano, plant manager. The Atlanta, Ga.-based company also has operations in Fort Wayne and Columbia City, Indiana and seven other countries.
The goal is to grow the Franklin plant to large enough to make the majority of EV and HEV electric car wiring manufactured in the United States, as the company has room to expand significantly on its 41-acre property, Cano said. Right now, the facility only takes up 68,000 square feet, but could expand exponentially, he said.
With several big-name contracts with electric car manufacturers and the push to get more electric cars on the market, growth is sure to come, Cano said.
Immediate growth at the Franklin plant includes a $2.5 million investment to enlarge the building and a $3 million investment in equipment for the electric car wire product line, according to the abatement application on file with the city.
The expansion would add six new jobs and retain 68 jobs. New jobs will pay $21 an hour on average, while retained jobs pay $29.84 on average.
Just a personal property tax abatement is before the Franklin City Council because the company applied for incentives after a building permit had already been granted for the expansion. State law says local governments cannot grant an abatement after a building permit is issued.
City staff and Mayor Steve Barnett are asking the council to approve a longer-than-typical seven-year personal property tax abatement to make up for the lack of a real property tax abatement.
The personal property abatement would save $135,800 if issued over seven years, or $109,000 if issued over five years.
The city council this week established the property as an Economic Revitalization Area (ERA), which allows the body to approve the tax incentive for projects on the land.
The land had an active ERA, but a city attorney recommended re-establishing it because it was created in 1991 for an incentive provided when Essex Furukawa first moved to Franklin.
The council will need to vote again on the abatement at the its next meeting April 5.
