City council approves tax abatement for project that adds 111 jobs; soccer fields will go away
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Haynes International has operated in Kokomo for more than 100 years. It has weathered economic storms and thrived, and today it is a market leader in high-quality metal alloys that are used in aircraft and even in spaceships.
This week, the company received a tax abatement from the Kokomo Common Council that will allow it to move forward on a $173 million investment to bring new forging technology to the community and add 111 high-paying jobs.
The council passed a pair of resolutions concerning the project on June 23. The first resolution determined that the qualifications for the Haynes site to be declared an economic revitalization area had been met. This allowed the council to then approve a 10-year property tax abatement for the project. The tax abatement slowly reduces by 10 percent annually over 10 years, starting at 100 percent.
Tim Honeycutt, Vice President of Operations for Haynes International in Kokomo, was on-hand to explain the project and its impact on the community.
"We're going to invest a total of about $173 million," said Honeycutt. "$52.6 million will go into a vacuum induction melting system. Most of the newer alloys in the world, the aerospace alloys, the things that go to our military, are all vacuum molded. So, this allows us to triple our capacity.
“The next part of the investment ($104.6 million) will be what we call long products forging. That includes a radial forging machine and includes all the furnaces and equipment to go with it. That allows us to be in the round market.”
A third investment is devoted to finishing the forged products. This amounts to a $17 million project that will straighten and polish the product for market.
Honeycutt explained that Haynes International in Kokomo long has been focused on producing flat products; sheets and plates of high-strength alloys. However, the aerospace market today wants round products – bars and billets.
“This investment allows us to keep up with the market,” said Honeycutt. “We can become a player in this round market, in this massive volume that we're currently missing out on.”
The plan is to construct two buildings; one on the northside of Defenbaugh Street, nestled within the existing plant structures. The second building will be constructed on the open lot at the corner of Defenbaugh and Berkley Road; a lot currently utilized by the Kokomo Soccer Club.
"Yes, it is part of the soccer field," said Honeycutt. "We're taking that over. We're building the forge to keep the future of our company here. I'm not anti-soccer. I've been accused of that before. This is the best location for (the forge). They used the soccer field for a long time, and they knew eventually we would use this property."
Honeycutt pointed out that the construction of the two buildings -- one at 40,000 square feet and the other at 85,000 square feet -- will translate into construction jobs in the near term. And once completed, the investment will allow Haynes to retain its 782 current employees who earn an average of $39.09 per hour and will add 111 jobs paying an average of $44.05 per hour.
"These salaries go into the community; these are real, full-time jobs,” said Honeycutt.
The vacuum induction building will tower 100 feet into the air. It will house a new forge to create the desired alloys needed for aerospace products. It is a highly monitored and maintained process due to the sensitivity to safety needed in the aerospace industry.
"I kind of get aggravated sometimes with all the quality checks and things we have to go through," said Honeycutt. "But then I or my wife gets on a plane, or one of my kids, and I'm kind of glad to go through all this."
The second facility will take the forged alloys and shape them into the round product currently in demand by other industries.
"This will be one of the most powerful (radial forges) on the face of the earth," said Honeycutt. "We're excited about having it. It allows us to use our materials in aerospace applications."
Clearly proud of the company's work, Honeycutt pointed out that Haynes products are used throughout most commercial and military aircraft, and some of the alloys made in Kokomo can even be found on the planet Mars, inside the rovers deployed by NASA.
“That's our plan,” said Honeycutt. “I want to build a future here. I moved to Kokomo from North Carolina. Kokomo is my home now, and I've told all the guys at the mill, I want all the work. I want it all to come to Kokomo. I don't want to give any of it away. So, this investment helps us to make sure that not only do we have a future, but our future can grow.”