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Noblesville’s largest private employer is planning a $30.2 million expansion that would create 288 jobs over the next 10 years.
SMC Corp. of America is seeking tax incentives to build a 27,000-square-foot clean room inside its existing building and invest in additional capital improvements at its 345-acre North American headquarters campus north of 146th Street and west of Howe Road.
The Noblesville City Council will consider a sliding 10-year tax abatement for the company at its meeting Tuesday night.
If approved, SMC would receive a 100% tax abatement on the property investment in Year One, with future abatements declining in 10% increments each year until they end a decade from now, according to the ordinance.
SMC, which was founded in 1959 and moved from Indianapolis to Noblesville in 2009, plans to relocate a business unit to Noblesville from Napa, California, expand its global research and development division, and increase its production capacity through investments in automation technology.
The new jobs, which would bring SMC’s total workforce to 1,157 by 2032, would have an average salary of $59,000.
SMC has 2.6 million square feet of total building area in Noblesville, including 560,000 square feet of manufacturing area and 571,000 square feet of warehouse space.
SMC Corp. of America in 2018 received tax incentives from the city to build a 1 million-square-foot distribution center.
The company spent nearly $50 million to build the facility, which opened in May 2019, and another $18 million to add manufacturing, logistical and information technology equipment.
SMC would receive a three-year extension to meet the employment requirement of its 2018 tax abatement agreement if the city council approves the new ordinance.
According to the terms of the 2018 tax abatement agreement, SMC agreed to employ 1,046 full-time employees in Noblesville by the end of 2022. However, the company currently has a headcount of 869 full-time employees.
SMC would have until the end of 2025 to reach 1,046 full-time employees and it would need to hire an additional 111 people by 2032 to meet its total commitment of 1,157 workers, according to the ordinance.
The company fulfilled previous job commitments under incentive agreements with Noblesville in 2007, 2011, 2012 and 2013, and with the state in 2009 and 2012.
SMC Corp. of America is a subsidiary of Japan-based SMC Corp., which has operations or subsidiaries in 53 countries and production facilities in 29 countries. It sells products in 83 countries. The parent firm recorded revenue of about $6.5 billion in fiscal year 2022, which ended March 31.
SMC Corp. has a global work force of 20,620 employees, including 1,700 engineering staff and 8,700 salespeople.
Among its products are actuators, control valves, vacuum parts, sensors, switches, air-preparation equipment and temperature controls. Its clients are found in the automotive, semiconductor, food and packaging, life science, natural resource and machine tool industries, among others.
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Every business expansion article in IBJ is accompanied by request for incentives or tax breaks language in the “low tax” state. So is it really the low tax state?
Depends on your perspective. Indiana is a low tax state if you are a business or multi-national corporation. However, not so much if you are a private citizen. Property tax rates are similar to those in California and we have the highest sales tax in the country, not counting additional food and beverage and local option and income taxes, school funding referendums, high vehicle licensing and wheel tax fees and … well you get the idea. As a bonus, the Republican legislature turned us into a right to work (for less) state.
Glen K, it’s almost like the Republicans set it up as shakedown money laundering operation. Offer the possibility of tax incentives, business/developer writes nice check to campaign funds, incentives are granted, rinse, repeat.
Exactly. Here’s an idea: Set aside 1 percent of the state budget (about $185 million per year) to publicly fund our elections. It would be the best possible investment of our tax dollars.