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The Journal Gazette

Tuesday, February 27, 2018 1:00 am

Sanko creating 48 jobs in New Haven

$5.46 million to be invested; tax break sought


A multinational auto parts maker from Japan is investing $5.46 million and creating 48  jobs at its existing location in New Haven.

Sanko Gosei, Technologies Inc., which acquired the Bhar Inc. location at 6509 Moeller Road in 2015, has asked the city to designate the 26-acre site an Economic Revitalization Area that will qualify for a tax abatement.

The proposal will get its first reading at tonight's New Haven City Council meeting.

Brian Yoh, New Haven's director of planning and economic development, said Monday the plan includes a $2.2 million building expansion and a $3.26 million investment in equipment, including $100,000 for information technology.

The company does precision injection molding of plastic components for vehicle interiors as a Tier One supplier, he said. Among the uses for the components are for air conditioning systems, Yoh said.

The new jobs, all full time, are 40 in what the company calls “direct labor” at an average annual salary of about $22,900 and eight in “indirect labor” averaging about $33,000 annually, according the application for the tax abatement.

The new jobs will increase Sanko's direct labor force by 40 percent, and the company is retaining all of the existing 169 jobs at the facility, the application says.

The company offers employees heath insurance, paid vacation and holidays, life insurance and dental insurance among its employee benefits.

In its application, Sanko reported about $30 million in sales last year, up from $23.6 million two years earlier. 

The new equipment is comprised of four injection-molding machines that will “support new business growth,” according to the application. The plant also will get four loading docks, additional space for finished goods and assembly, air conditioning and electrical, plumbing and HVAC upgrades. A new crane also is planned.

Work is scheduled to begin in June. The work, and the additional hiring, should be done by June 2019, the application states.

Sanko began in Japan in 1940, according to the company's website. The facility in New Haven, which has a Fort Wayne postal address, is the only production facility in the United States for the publicly traded company, the site says.

It lists additional Sanko locations in Hungary, the United Kingdom, Thailand, India, China, the Philippines, Mexico, Malaysia, Singapore and Indonesia. But the New Haven facility, built in 1976, needs work to “maintain a competitive position in the current marketplace,” Sanko's application says.

Without the improvements, the application continues, the local facility “may cease to be relevant and could be replaced by a more appropriate facility outside of this region.”

The company reports its three top customers, its three top competitors and two of its three top suppliers are in Indiana and Ohio.

If the abatement is granted, the company would save just under $325,000 in real estate and personal property taxes over five years, while paying just over $680,000.

The proposal will have a public hearing at council's meeting at 7 p.m. March 13.