ANDERSON — A sister company to NTN Driveshaft will make a $92 million investment in Anderson that will bring 198 jobs to the city.

Anderson city officials announced Friday that NTK Precision Axel Corp. will build a 300,000-square-foot facility to the west of the NTN Driveshaft building near 73rd Street and Layton Road.

NTK will start construction in April and hopes to begin production at the Anderson facility in October 2018. The last of the 198 jobs are expected to be created by 2021.

The company, which has a production facility in Frankfort, will make drive-shaft component parts in Anderson that will be used at the NTN Driveshaft facilities in Anderson and Columbus.

The projected annual payroll for the NTK plant in Anderson is $7.2 million.

The city of Anderson is providing an incentive of $1.6 million from Tax Increment Financing revenues for NTK to purchase 40 acres from NTN.

The Anderson city council will be asked to approve a 70 percent abatement on real and property taxes for 10 years. After 10 years, the city would collect 100 percent of assessed taxes.

It has been estimated by the Anderson Economic Development Department that NTK will pay $7 million in property taxes during the abatement period.

“We are very excited about NTK becoming part of our community and bringing employment opportunities for our citizens," Anderson Mayor Thomas Broderick Jr. said, "but it was also important that they contribute to our community through the payment of taxes. I am pleased that the agreement will allow the city to begin receiving taxes the first year after the assessment.”

As part of the agreement, NTK will provide 10 internships to Anderson city high school students and two scholarships for city high school students wishing to attend Anderson University, Purdue Polytechnic Anderson or Ivy Tech Community College.

Broderick said the 10 internships will be offered to students on an annual basis and the two scholarships will pay tuition costs.

“This is an agreement that is favorable to both the city and NTK,” he said.

The Indiana Economic Development Corporation will offer NTK $1 million in conditional tax credits based on the company’s plan to have 140 jobs in place by 2020.

Tadao Okamura, president of NTK, said the company is excited about starting operations in Anderson and thanked city and state officials for making the investment possible.

“With NTN we will grow in Anderson,” he said.

Indiana Secretary of Commerce Jim Schellinger noted that NTN and NTK will now have four facilities in Indiana since NTN opened a facility in Columbus in 1990.

“Here in Indiana, we are home to the highest concentration of manufacturing jobs in the nation because our state has worked hard to build a pro-growth business climate,” Schellinger said. “Global companies like NTK are choosing Indiana because we offer a low-cost, low-tax, limited-regulation environment with a workforce that is second to none.

“This great announcement employing 200 Hoosiers and investment of almost $100 million in a 300,000 square-foot facility,” he said. “It doesn’t get any better than this.”

Schellinger said 60 Japanese companies have either located or expanded operations in Indiana, providing 7,200 jobs since 2013.

“Today we have 260 Japanese companies in our state that employ 53,000 Hoosiers,” he said. “This is successful because of the strong commitment Indiana and Japan have to each other for many years.”

NTK is a joint partnership of NTN USA Takao Kogyo — an international company related to precision machining of power train parts — and Neturen USA.

Jim Riggs, president of NTN, said NTK will manufacture a component that will be utilized the constant velocity joint's driveshaft.

He said the NTK plant in Anderson will provide component parts for both the Columbus and Anderson plants and that the NTK plant in Frankfort didn’t have the capacity to supply both plants.

Riggs said production in Anderson started on Feb. 23 and the first product will be shipped in April.

NTN currently has 83 employees in Anderson.

“People in Anderson are very, very excited individuals,” he said. “They have very high morale and we’ve been very pleased with their outlook and their opportunity to work for NTN. I think they’re going to be great employees.”

NTN Driveshaft is investing $84.5 million in the 325,000-square-foot building that will manufacture 300,000 constant velocity joints, with production expected to start this spring.

The company plans to create 311 jobs by the end of 2018. A planned expansion will result in an investment of $60 million and the creation of another 100 jobs by 2019.

​Follow Ken de la Bastide on Twitter @KendelaBastide, or call 640-4863.

Senior Reporter covering Anderson and Madison County government, politics and auto racing for The Herald Bulletin. Has been working as a journalist in central Indiana since 1977.