Case Study: Kalida Manufacturing
Kalida Manufacturing Inc. (KMI) is a Tier II stamping and welding plant in Putnam County, Ohio, producing auto frame sub assemblies for Honda vehicles. KMI is structured as an individual corporation and its sole shareholder is KTH Parts Industries in St. Paris, Ohio. Along with the two Ohio locations, KTH Parts has two other plants in North America. Kalida Manufacturing is a supplier to the three KTH plants.
With Honda announcing production increases, KMI was chosen to receive a significant portion of the work, necessitating the expansion of facility and plant operations. Plans included new presses and robotic welding lines, as well as the expansion and extension of an adjacent road leading to the plant. The investment, exceeding $22 million, led to the purchase of 600-ton and 2,500-ton presses. A 135,000-square-foot expansion of the welding area was followed by a 15,000-square-foot addition for stamping. The road expansion connecting to the plant’s grounds was also a critical piece, in that the improvement would allow access for steel truck deliveries. The Regional Growth Partnership spearheaded the project and, through its relationship with JobsOhio, led efforts to secure a Jobs Creation Tax Credit, a Roadwork Development Grant and a Workforce Training Grant for KMI.
Why Northwest Ohio?
According to plant manager Rick Esch, parent company KTH Parts gave high regard to the existing workforce, citing it as a primary factor for the major expansion. The KMI plant is recognized as a highly productive and cost-effective facility. Another contributing reason was the strong support provided by local and state governments and economic development groups, evidenced by the speed in completing the road expansion and the quick turnaround in approving the state incentives. In addition, the plant’s central location provides for exceptional access to the other North American plants.