State, Kettering trying to woo company to run Delphi plant
Tenneco Automotive Operating Co. is considering investing in the plant, bringing 350 full-time jobs.
Friday, January 11, 2008
KETTERING — Ohio and Kettering governments are offering Tenneco Automotive Operating Co. financial incentives to take over a Delphi plant.
Tenneco is proposing to invest $35 million into a Forrer Boulevard suspension parts plant, putting 350 full-time jobs there.
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Aerial view of the Kettering Delphi plant on Forrer Boulevard looking southwest.
Workers leave the Delphi plant in Kettering Thursday afternoon. Tenneco Inc. is working with state and local governments along with Delphi Corporation to buy the bankrupt company.The auto parts maker is weighing whether to keep those jobs in Kettering — or move them to the state of Georgia or Mexico or China, according to a project summary from the Ohio Tax Credit Authority.
To keep the operation in Ohio, state government last month offered Tenneco a $919,922 tax credit, said Melissa Ament, an Ohio Department of Development spokeswoman. A total of $1.7 million in state aid may be approved eventually, she added.
A Tenneco spokesman, Jim Spangler, said only, "This is something we continue to evaluate."
The plant has been laying workers off in recent weeks, and it wasn't clear how many workers are there today. Last August, Delphi said the plant employed about 600.
Lake Forest, Ill.-based Tenneco anticipates having 350 positions at the plant total, said Mark Schwieterman, Kettering city manager.
"The 350 (number) is the commitment Tenneco is willing to make to the state for the job creation tax credit," Schwieterman said.
Kettering has offered Tenneco an income tax rebate to operate the plant, contingent on state aid and Tenneco's investment. The city and the state expect Tenneco to offer an average employee wage of $14.28 for all new positions, excluding benefits. Both governments also say Tenneco must maintain operations for at least 14 years.
The resolution identifies a "rough estimated cost" to Kettering of $110,000 — more than $15,000 a year for seven years. Schwieterman said that number may rise with the number of Tenneco's employees.
Contact this reporter at (937) 225-2390
or tgnau@DaytonDailyNews.com.
