Japan-based automotive supplier announces new Toyota Supplier Facility in Clark County PDF Print E-mail

Governor Mike Pence joined executives of Toyota Tsusho Corporation in Nagoya, Japan, recently as the company announced plans to locate a new automotive supply chain operation in Charlestown. The facility will be home to Magnolia Automotive Services, LLC, which is an affiliate of Toyota Tsusho America Inc.


“As a state, we have worked hard to create a business-friendly environment that encourages growth and attracts new jobs to Indiana,” said Governor Pence. “We cut taxes and reduced burdensome regulations while investing in vocational training and quality of life initiatives to attract new talent to the state. And I’m proud to say those efforts are being recognized by companies like Magnolia Automotive Services that choose to create jobs here in the Hoosier State when faced with a world of options.”

Magnolia will invest $4.4 million to establish a new facility at River Ridge Commerce Center in Charlestown. This project, which is an expansion of an ongoing joint venture between James Group International Inc. and Toyota Tsusho America, will result in Magnolia’s first automotive industry facility outside Mississippi. The new Hoosier facility will serve as a key distribution center, supplying automotive parts and components from more than 100 suppliers in North America to various Toyota production facilities.

Magnolia, which is a certified Minority Business Enterprise (MBE), will begin for hiring immediately. Interested applicants may apply by sending a resume to human resources, indicating MAS on the subject line.

“We are all very excited and happy to be able to locate a new facility in Charlestown, Indiana, and to continue our strong relationship with Toyota Motor in a new capacity as one of their supply chain logistics providers,” said Lorron James, president of Magnolia Automotive Services. “Toyota has been highly supportive of Magnolia, as well as the entire minority business community, and we are truly honored to have this opportunity as Indiana is a great place to do business.”

Japan-based Toyota Tsusho provides logistics, manufacturing, supply and technical support to Toyota Motor Manufacturing, and already supports several Hoosier operations, including facilities in Columbus, Lafayette and Princeton.

The Indiana Economic Development Corporation offered Magnolia Automotive Services, LLC up to $150,000 in conditional tax credits based on the company’s job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. Magnolia Automotive Services’ location also affords it the opportunity to apply for benefits through the Urban Enterprise Zone, located in River Ridge Commerce Center.

“I couldn’t be happier to share the news about Toyota Tsusho coming to Charlestown. This is a big win for our community and we’re eager to further the positive relationship we’ve begun with this company,” said Charlestown Mayor Bob Hall, who attributed the success in part to New Albany Mayor Jeff Gahan. “I also give a lot of credit to Mayor Gahan and the city of New Albany for keeping Southern Indiana in the hunt for this project when company leaders were on the verge of going in another direction. Had Mayor Gahan not kept the dialogue going with company leaders, this project could have landed in an entirely other region or state.”

Exporting roughly $1.6 billion of Hoosier-made goods to Japan each year, Indiana counts Japan as its largest Asian trading partners and third-largest export country in the world. Indiana is the only U.S. state that is home to three Japanese original equipment manufacturer (OEM) automotive companies: Honda, Subaru and Toyota.

“The Indiana Economic Development Corporation has played a very important role in bringing Magnolia to Indiana,” said James. “We are also very appreciative of the local economic development organizations for their assistance. In particular, we want to thank the Mayor of Charlestown, along with other local government representatives who have extended every courtesy to us and greatly influenced our decision to locate here, as well as offering their continued support during the development and implementation of this project. We look forward to being a strong member of the Charlestown community and a good corporate citizen of Indiana.”

About Magnolia

Automotive Services, LLC

Magnolia Automotive Services, LLC is a joint venture strategic alliance between James Group International, Inc. and Toyota Tsusho America, Inc. Magnolia was formed in 2011 and performs tire and wheel assembly operations for the Toyota Motor Manufacturing Mississippi, Inc. (“TMMMS”) automobile assembly plant located in Tupelo, Mississippi. Magnolia is currently certified as a Minority Business Enterprise (“MBE”) by the Southern Region Minority Supplier Development Council, a not-for-profit organization which strives to expand business opportunities for minority-owned suppliers. In 2013, Magnolia was awarded the Minority Business Enterprise Supplier of the Year distinction, which recognizes suppliers and corporations who excel in supplier diversity and excellence in business.

About the James Group

International, Inc.

The James Group International, Inc. (“JGI”) began as O-J Transport, a trucking company formed in 1968 by John A. James and Calvin Outlaw with a used single used tractor and a 40-foot trailer.  By 1978 O-J Transport had expanded to a fleet of 30 tractors, purchased its own “truck terminal”, and became the first black-owned trucking firm to receive intrastate operating authority for auto parts from the Michigan Public Service Commission. In 1980, O-J Transport became first black-owned firm to receive permanent 48-state common carrier status to transport auto parts. O-J Transport continued to expand through the next decades becoming a key parts delivery service provider to Ford, and creating a special-purpose inventory system to track parts and delivery to Ford assembly plants in FIFO (First In, First Out) order. When Calvin Outlaw passed away in 1998, O-J Transport became the James Group International signifying the passing of one its founders and also the changing nature of the organization from a simple trucking company to one which focuses on the larger functions of logistics. JGI continues today under the leadership of its co-founder, President and CEO, John A. James, dedicated to its vision of being the premier global provider of supply chain management services. In addition to Magnolia, JGI owns three other world class logistics service providers: Renaissance Global Logistics, TLX and MotorCity Intermodal Distribution.  For more information about each of these companies and the James Group International, visit http://www.jamesgroupintl.com/.

About Toyota

Tsusho America, Inc.

Toyota Tsusho America, Inc. (“TAI”) is a wholly owned subsidiary of Toyota Tsusho Corporation of Japan, which was founded as a trading and supply-chain specialist of the Toyota Group. TAI has been operating in North America since 1960. Over the past four decades, it has evolved from a trader in a limited number of commodities and finished goods to a multi-business enterprise which combines international trading with an expansive range of domestically targeted functions such as supply-chain services, intermediate goods processing, etc. TAI’s seven operating divisions (Metals; Machinery, Electronics & Auto Parts; Logistics and Manufacturing Support; Automotive; Consumer Products, Services & Automotive Materials; Food & Agricultural Products; and Energy & Chemicals) pursue a broad mix of business opportunities related to both industrial and consumer products and services. TAI has offices in 16 states from coast to coast in the U.S. and operations in Canada, Mexico and Costa Rica, with consolidated annual sales in excess of $4 billion. For more information about Toyota Tsusho America, Inc., visit http://www.taiamerica.com/.

About IEDC

The Indiana Economic Development Corporation (IEDC) leads the state of Indiana’s economic development efforts, focusing on helping companies grow in and locate to the state. Governed by a 12-member board chaired by Governor Mike Pence, the IEDC manages many initiatives, including performance-based tax credits, workforce training grants, public infrastructure assistance, and talent attraction and retention efforts. For more information about the IEDC, visit www.iedc.in.gov.