When Nestle USA’s site selection committee chose Anderson, Ind., earlier this year for a $359 million factory and distribution center, the company did so primarily because of the city’s central location and the feeling that it would be a good place for Nestle employees and their families to live.

“While we considered several potential locations, Anderson was an obvious choice,” said Rob Case, president of Nestle USA’s Beverage Division. “From the very beginning of our discussions, it was evident that Indiana is a very business-friendly state. Its central location and established transportation infrastructure will be great assets for our distribution center.”

The company selected a 190-acre site about 40 miles northeast of Indianapolis to build an 880,000 square foot facility that will produce the company’s Nesquick and Coffee-Mate products. Construction will begin later this year, with an anticipated opening in early 2008. The combined facility will initially employ nearly 300 employees.

The Indiana Economic Development Corp. (IEDC) and the city of Anderson worked together to provide an incentive package that will assist the company. The IEDC-offered incentives include up to $250,000 in training grants, up to $550,000 in infrastructure assistance to the local community and about $7 million in tax credits based on job creation and capital investment. The city will provide incentives in the form of tax abatements and infrastructure assistance.

Also in August, Shoe Carnival Inc. broke ground for its new national corporate headquarters in Evansville, Ind. Company executives also announced the creation of about 120 new jobs at the headquarters and distribution center (DC) located in Evansville.

Slated for completion in March 2007, the two-story, 60,000 square foot headquarters will house about 190 people. The company also recently began construction on a new 410,000 square foot DC that is scheduled for completion this December. Shoe Carnival currently employs 160 people at its DC. Total capital investment for the two expansion projects exceeds $40 million.

“As the integral pieces of our future growth plans, these two projects serve as the platform that will enable us to expand the Shoe Carnival concept across the United States,” said Mark Lemond, president and CEO of the company. “Importantly, both of these buildings will be capable of future expansion, as we intend to continue our commitment to the Evansville area for many years.”

The IEDC offered incentives, including up to $20,000 in training grants, up to $200,000 in infrastructure assistance to the local community and about $2 million in tax credits based on job creation and capital investment. Vanderburgh County will provide the company with a 10-year tax abatement on both real and personal property.

Honda to Build $500 Million Facility in Greensburg

Indiana will be home to Honda’s new North American automobile plant. The facility, which will begin production in late 2008 and employ 2,000 workers, will be located on 1,700 acres near Greensburg, Ind.

According to Honda officials, the company will build a $550 million facility in Decatur County beginning later this year. The plant will have an annual production capacity of 200,000 vehicles.

Combined state and local direct investment to support the Honda project includes EDGE (Economic Development for a Growing Economy) tax credits, training assistance, and real and personal property tax abatements totaling up to $41.5 million. In addition, there will be infrastructure support for water, wastewater and road improvements of about $44 million.

To accommodate future growth in the region, the state is expediting a long-sought interchange upgrade on Interstate 74, along with water, wastewater and other road upgrades totaling about $56 million.

The Southeastern Indiana Government Grant Program will provide infrastructure assistance to the project. The city of Lawrenceburg initiated the grant program to stimulate growth, retention and improvement of the economic climate in nine counties in southeastern Indiana.

Rolls Royce To Expand Indianapolis Plant

In mid-June, Rolls Royce announced a major expansion at its Indianapolis plant that will add 600 new jobs. The facility is the largest of the global company’s manufacturing sites in North America and currently employs more than 4,000 workers.

Rolls-Royce Corp. is a leader in advanced manufacturing, research and development, and gas turbine engine servicing for civil aerospace, defense, marine and energy markets.

The Indiana Economic Development Corp. will provide a $17 million forgivable loan in return for the company’s commitment to invest $145 million in capital while creating 600 jobs. Jobs will be spread over manufacturing, engineering, and research and development. All jobs will pay in line with the current Rolls-Royce wage and salary structure.

In addition, the city of Indianapolis has approved a 10-year abatement worth about $11 million, based on agreed Rolls-Royce capital investment and job creation.

Up to 150 of the estimated 600 new jobs will be created through the establishment of a center of excellence dedicated to the advancement of aerospace industry technology. The additional 450 new jobs will be created in increments during the next eight years.