Honda to Build Plant in Indiana but Ohio Will Supply its Parts

John Miles, General Manager of Florida Production Engineering's Ohio plants has witnessed how Indiana and Ohio competed for Honda's new assembly plant. But he knew that they would surmount whatever trials that will come to the plant.

It is no secret that FPE has auto parts manufacturing plant in Circleville, south of Columbus, and in the Darke County Village of New Madison, which is 16 miles from the Ohio-Indiana border. This is also one of the reasons why Miles is confident.

The announcement made by Honda last June that it would build the $400 million plant in Greensburg has somewhat disappointed many in the Buckeye State. Despite what happen the Ohio auto parts suppliers have console themselves that Honda with its six North American assembly operations is still near.

Ohio has by far the largest number of parts suppliers to Honda's North American operations. According to Honda spokesman Edward Miller, Ohio has 140 Honda suppliers, which is well above the 74 suppliers in Michigan and its 53 suppliers each in Indiana and Kentucky.

Last 2006, Honda has paid Ohio suppliers with $6.4 billion which is a big bite off the $17.6 billion that the company paid for suppliers nationally added Miller. In North America, Honda has a total of 610 suppliers that provide them with auto components such as Honda hood and auto accessories that are used by the automaker in their auto making business. More than 500 Honda suppliers are found in United States scattered in and around central and western Ohio.

The New Madison plant is to receive a $1.2 million state loan in a $3 million expansion expected to retain 70 jobs and create 35 others for the first three years of the plant. Both expansions are intended to help the FPE to attract new business from Honda. At present 30 to 40 percent of the company's business is from Honda. The firm also caters to the needs of General Motors, DaimlerChrysler, and other automakers. The Madison plant is where the company makes full wheel covers for Honda.