Japan-based auto supplier expands Indiana manufacturing

Ryobi Limited will expand its operations in Shelby County, IN, creating up to 150 new jobs by 2018. The company will invest $97.5 million into its U.S. subsidiary Ryobi Die Casting USA, purchasing and equipping a 350,000-square-foot facility adjacent to its campus in Shelbyville.

The facility, which will expand the company’s operations in Shelbyville to cover four buildings across 1 million square feet, will allow Ryobi to grow its structural and engine block die casting to increase production to process 500,000 castings annually by 2018. With construction expected to begin this fall, the company plans to begin operating in its new facility by late 2017.

Ryobi, which employs 8,900 associates globally, including more than 860 in Shelbyville, plans to hire for additional manufacturing and management positions over the next 18 months.

“Ryobi Die Casting is a world-leading manufacturer of powertrain and structural/body-in-white castings, said Tom Johnson, president of Ryobi Die Casting USA. “This investment clearly shows our commitment to the ever-expanding light weight and fuel efficient markets. Our company considered options on where to locate this expanded production, but we ultimately chose our Indiana facility because of the high-quality work our team performs here, as well as the excellent business environment that continues to support our growth.”

Ryobi launched production in Shelbyville in 1985, which is the company’s only manufacturing location in the United States. Operating 12 manufacturing facilities across six countries, Ryobi specializes in aluminum die casting for more than 300 different types of automobiles. Aluminum die casting helps make automobiles lighter and is a more environmentally-friendly alternative than traditional steel auto bodies. In Indiana, Ryobi produces transmission cases, housings, engine parts and structural parts for Ford, General Motors, Hyundai, Honda and Toyota. A publicly-traded company, Ryobi’s 2015 sales reached $2 billion, with the majority of its revenue coming from its die cast division.

This announcement marks the third large economic development announcement in Shelbyville just this year. In March, Germany-based Krone North America announced plans to relocate its U.S. headquarters from Tennessee to Shelbyville, which will create 101 new jobs. Japan’s largest steel producer, Nippon Steel & Sumitomo Metal Corporation (NSSMC), also announced that it is building a new facility in Shelbyville, with plans to add 70 new jobs.