High-Pressure Diecaster Setting Up in Indiana

High-Pressure Diecaster Setting Up in Indiana

Omen USA rehabbing plant to produce aluminum automotive driveline, steering components $23 million capital investment Start up this year Employment-based tax credits

An automotive power transmission unit cover, diecast in aluminum by Omen Casting Group.

Omen USA, a subsidiary of Omen Casting Group, plans to invest $16 million to refurbish a 76,000-sq.-ft. plant in Richmond, IN, preparing to start producing aluminum high-pressure diecastings there by the end of this year. The operation will produce aluminum parts for drivelines, steering components, and oil pumps for domestic and European automaking customers.

A further $7 million would be invested in the operation by 2021. Omen USA expects to employ up to 100 by 2019.

Omen is majority owned by Kibbutz Hatzor, an Israeli cooperative, and a private equity group, Tene Investment Fund. It has diecasting operations in Israel and Portugal, manufacturing aluminum parts like axle carriers and covers, and power transmission unit housings and covers. The group also has a joint venture with UC Rusal, the Russian primary aluminum producer, which produces aluminum automotive diecastings for OEMs in Russia and the C.I.S. 

The entire organization has over 240 employees at the diecasting plants in Israel, Portugal, and Russia.

“Omen’s decision to invest in a project in Richmond, Indiana was taken to fulfill the commitments to our American clients of localizing Omen’s production, constructing a modernized facility near our customers and offering close support while minimizing supply chain risks,” stated Gabi Rezinovsky, v.p. of Business Development for Omen Casting Group. “The support of the state and local authorities are an important factor in deciding on Richmond, Indiana.”

The Indiana Economic Development Corporation is offering $400,000 in performance-based tax credits for the project, and up to $150,000 in training grants. The credits are indexed to the group’s progress toward job-creation goals.

City and county agencies in Richmond also are offering incentives to the project.

Wayne County and the city of Richmond will consider additional incentives at the request of the Economic Development Corporation of Wayne County.

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