Sunday, June 22, 2008
(Last modified: 2010-07-08 09:58:02)
The International Automotive Components Group North America may be expanding its Dayton plant with a projected $4.5 million project cost.
IAC is a global supplier of automotive components and systems, including interior and exterior trim and structural and functional applications, according to the group's website. The Dayton plant specializes in manufacturing injection-molded plastic parts.
Rich Lee, plant manager at the Dayton plant, spoke before the Dayton City Council at a special called meeting Thursday to discuss matters related to the expansion.
According to the Dayton plant expansion proposal given to council members Thursday, IAC would require a total addition of 147,000 square feet for the new expansion. 67,000 square feet would go toward the manufacturing addition and 80,000 square feet would go toward the warehouse addition.
Some of the building expenses would include columns, runways, switch gear, 11 loading docks, additional break rooms and rest rooms and a shipping office.
IAC already has contracts for the manufacturing of rear door interior trim for 2010 Nissan X61F model cars as well as molded defrost ducts for 2010 Honda Odyssey IP cars. IAC has also bid on package shelves for 2010 Hyundai NF model cars and lift gate trims and cloth pillars for 2010 Mercedes W-166 cars.
Approximately 93 new employees would be needed to manufacture these parts, according to Lee.
Based on the projected $4.5 million cost, Dayton Industrial Development Board would like to amortize this across a 15-year term. However, IAC can only offer a seven-year lease with the board, and it would have the option of purchasing the existing building and new expansion. Since the terms and length of the lease have not yet been negotiated between the board and IAC, a final proposal is still pending, according to Dayton Mayor Bob Vincent.
The city would stop the current rent of $5,000 per month once construction began. Additionally, IAC would not be expected to pay rent after the 15 years, but it would still pay property taxes.
The city would be fiscally responsible for constructing an employee parking lot on the 50-acre site the city purchased, according to the proposal. This lot runs north of the plant along Water Plant Road. The parking lot would have 400 parking spots as well as parking for 20 trailers.
The city would need to provide electrical power for the new expansion, and once the city approves the project, it would be submitted to IAC executives for review.
At Thursday's meeting, the city council passed a motion to authorize the city manager, city attorney and the Southeast Tennessee Development District to work with IAC and the Dayton Industrial Development Board to come up with a proposal for the expansion of IAC.
The next step will be the presentation of a formal expansion project proposal to the city council.
Copyright © 2014, The Herald-News