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Michigan-based Magna Seating of America Inc., a subsidiary of Magna International Inc. ( MGA - Analyst Report ) , recently received a preliminary approval for $8.5 million in state tax incentives from Kentucky Economic Development Finance Authority (KEDFA) in Frankfort for its Shepherdsville plant.
Previously, KEDFA granted a $6 million tax incentive for the plant due to its original plans and proposals. But, earlier in March this year, the company made changes to its plans and announced that the proposed plant would be much bigger than what was previously estimated. Thus, KEDFA increased its tax incentive for the plant.
As per the previous estimates, the Shepherdsville plant would have covered an area of 90,000 square feet nearly and would have accommodated 234 workers at an average hourly wage of $20.
However, as per the changed plan, the plant will now cover an area of 140,000 square feet and will have 450 workers working in it at an average hourly rate of $23. Thus, the company’s investment in the project has also increased to $19.8 million from $15.5 million.
According to the company, the Magna plant is expected to manufacture and supply seats and seating components for Ford Motor Co.’s ( F - Analyst Report ) Louisville Assembly Plant, which is scheduled to open later this year after a $600 million retooling. Magna also expects its plant to become operational soon. However, the opening date is yet to be finalized.
Magna Seating, an operating group of Magna International, develops and manufactures complete seating solutions and mechanisms for the global automotive industry. Its product offerings range from consumer and market research, full concept development, design and engineering, testing and validation to manufacturing of seating components and complete seat assemblies.
Magna International Inc., based in Aurora, Canada, is a leading manufacturer and supplier of automotive components. The company designs, develops and manufactures automotive systems, assemblies, modules and components, besides engineering and assembling complete vehicles, primarily for sale to original equipment manufacturers (OEMs) of cars and light trucks.
The product portfolio includes automotive interior and exterior systems, seating systems, body and chassis systems, electronic systems, powertrain systems and roof systems.
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