GKN To Invest More than $6.9 Million To Update and Renovate Salem...

GKN To Invest More than $6.9 Million To Update and Renovate Salem Plant


GKN Sinter Metals, an advanced manufacturer of precision powder metal products for the automotive industry, announced plans to expand its operations in Salem, creating up to 24 new jobs by 2020.


“Indiana supports more than 8,500 manufacturing businesses and is home to the highest concentration of manufacturing jobs in the nation,” said Governor Mike Pence. “Indiana offers manufacturers a low-cost, low-tax business climate and a dedicated, skilled workforce that provides global firms like GKN Sinter Metals the tools they need to succeed. The Hoosier state is a state that works for business and supports manufacturing operations that power our world.”

The company, which is a subsidiary of United Kingdom-based GKN America Corp., will invest more than $6.9 million to update equipment and renovate its current 220,000-square-foot facility at 198 S. Imperial Dr. in Salem.

The new equipment will allow GKN Sinter Metals to increase its production of eight-speed and 10-speed transmissions for the automotive industry. The first round of the new enhanced equipment was installed this year, with the second phase scheduled to begin in 2017. In addition, the company plans to make both interior and exterior enhancements to its existing building, which includes updated employee amenities and a new innovation room to showcase current advanced manufacturing technologies.

GKN Sinter Metals employs more than 6,500 associates across more than 30 facilities around the world, which includes production sites in Germany, Italy, South Africa, Canada, China and Brazil. The company currently employs more than 400 Hoosiers, with plans to hire hydraulic CNC press setup operators, maintenance specialists, CNC machinists and process control technicians. The new career opportunities are expected to pay average salaries more than 20 percent higher than the Washington County average wage. Interested applicants can apply by emailing (salemhr@gkn.com) or mailing a resume to human resources at 198 S. Imperial Dr.

“In order to continue increasing our sales, it’s important for us to expand our product offering as customer demands change,” said Jai Perumal, plant manager at GKN Sinter Metals. “In order to exceed our customers’ expectations, we want to continue investing in equipment and technology that results in quality products. As a leader in both the manufacturing and automotive industry, Indiana continues to be a great place for GKN to grow its footprint.”

Founded in 1759, GKN manufactures and sells a range of powder metallurgy products, technologies and engineered solutions for the automotive, industrial and consumer markets worldwide. The Salem-based facility mainly produces automotive engine and transmission parts for its customers, which include Ford, General Motors, Allison Transmissions, Toyota, Honda, Mazda and Chrysler. In 2013, GKN’s Indiana operations received the Nexteer Perfect Quality Award for its commitment to total quality as a valued customer.

The Indiana Economic Development Corporation offered GKN Sinter Metals LLC up to $100,000 in conditional tax credits and up to $50,000 in training grants based on the company’s job creation plans. These incentives are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The city of Salem approved additional incentives at the request of the Washington County Economic Growth Partnership. The Regional Impact Fund administered by Radius Indiana also provided support for the expansion.

“We are very grateful to have GKN Sinter Metals in our community,” said Salem Mayor Troy Merry.” Our city is fortunate to have a company invest millions of dollars to update equipment and renovate its current facility located in Salem. As mayor, I fully support GKN’s commitment to expand in Indiana.”

Today, one in five Hoosiers work in the manufacturing industry and companies like GKN Sinter Metals continue to find the workforce they need to expand in Indiana. The Hoosier state ranked second in the nation in June for manufacturing job growth and is also home to the second largest automotive industry in the nation.