Northern Indiana Update.

• Author: MATHEW, JAN
• Position: New and expanded facilities

TOP BUSINESS STORIES

ST. JOSEPH COUNTY

Michiana's legacy of automaking returns with the January 2000 announcement of a General Motors of North America (GM) and AM General Corp. mega-deal, projected to bring thousands of jobs to this region by 2003. Touted by Gov. Frank O'Bannon as "one of Indiana's biggest economic development projects in a decade," the industry giants will collaborate to manufacture a completely new sport utility vehicle, one based on the technology used in the popular Hummer.

AM General and GM will pump more than $200 million into expansion and equipment at the current Mishawaka AM General facility. Another $50 million will be spent for roadway improvements, property acquisition for the expanded site, and worker training. Thirty-five acres will be added to the existing 96-acre site, allowing for another 630,000 square feet of new production space.

The Mishawaka plant currently produces more than 3,000 military and commercial Hummer units annually. By 2003, 40,000 Hummer-like SUVs, called H2s, will roll off the line per year, boosting production worker employment by 1,500 (current employment stands at about 950). The new SUV production is expected to produce about 3,900 additional jobs at the supplier and subcontractor levels.

"With the rich automotive history of the area and our highly skilled workforce, Mishawaka is a great place for this production facility," says Pat McMahon, executive director of the economic development group Project Future.

Midway through a five-year capital expansion, AlliedSignal will invest $100 million in its Aircraft Landing Systems operations on South Bend's west side. Money will be allocated for new equipment, facility refurbishment and Engine Controls and Accessories unit employee training.

AP Automotive Systems Inc. will hire 53 new workers and invest $7 million in plant improvements over the next three years. AP, located in Granger, employs about 200 and is the world's third-largest supplier of auto exhaust systems.

Schafer Gear Works Inc. recently completed a $4.5 million expansion of its headquarters and manufacturing facility in South Bend's Blackthorn Corporate Park. The company produces gears for automobiles, heavy-duty trucks and tractors, and employs about 100.

St. Joseph County's largest employer is Honeywell in South Bend, maker of aircraft landing and fuel systems, with a workforce of 1,562. After AM General, Bayer Corp.'s Diagnostics Division is the third-largest employer in the...