The Indianapolis News from Indianapolis, Indiana on July 19, 1994 · 25
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The Indianapolis News from Indianapolis, Indiana · 25

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Indianapolis, Indiana
Issue Date:
Tuesday, July 19, 1994
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25
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Tuesday, July 19, 1994 THE INDIANAPOLIS NEWS D-3 Invest rnenr will steer Ford plant into the future By CHRIS O'MALLEY Th Indianapolis News A $550 million investment announced Monday by Ford Motor Co. at its Indianapolis steering components plant will create just 75 jobs compared with 6.300 jobs promised at United Airlines' $800 million Indianapolis repair base. - But Ford plant officials on Monday welcomed the investment as a ' vote of confidence in the plant, which produces 97 percent of Ford's steering systems. "What this means, to Indianapolis is the growth of our business, job security," said plant manager Stan Knight. Knight said other operations could have taken the business. He didn't name the competition, but a Michigan plant makes steering components for some of Ford's vans. , "We're able to stay competitive because of the quality of our work force here," Knight said. Much of the $555 million being poured Into refitting the 37-year-old plant is spurred by changes in vehicle designs and technology. Such a large investment, without yielding many jobs, is not uncommon in the auto industry, said Jim Cox, president of United i Autoworkers 1111. He said the plant's 3,200 workers will likely continue to work overtime to meet robust demand by Ford. The modest need for more workers in Indianapolis is largely because of a new joint venture with Ford's Wuelfrath, Germany, plant that makes power setting gears for small cars. Indianapolis workers will provide control valves for the European vehicles. Demand Is particularly strong In Europe, where Knight would like to boost exports of power steering pumps. Now, only about 15 percent to 20 percent of some car lines there have power steering. Knight estimated that European sales from Indianapolis could double to $200 million in 1997-1998. In 1992. the Indianapolis plant became Ford's first in years to make major exports to Europe. During that expansion. Ford hired more than 160 workers In Indianapolis and invested $150 million to renovate 200,000 square feet of manufacturing space. That renovation was largely to supply power steering parts to Ford's Mondeo "world car," which has since been a hot seller. Indianapolis now is gearing up "".- r2 f - J,.3 i L ' i .. ' J," -A r - - - - - - . -. -- - I L! Patty EspichThe Indianapolis News Bianca Donselaar puts tie rods on steering gears at Ford's Indianapolis plant. The factory at Shadeland and English avenues will be upgraded in a project set for completion in 1997. to provide components for the Mondeo's North American cousins the Ford Contour and the Mercury Mystique. The Indianapolis plant annually plans to supply about 700,000 steering components to Ford's Kansas City plant, where the Contour and Mystique are assembled. The Indianapolis plant has not been actively pursuing non-Ford business, unlike some Indiana operations of competitor General Motors. Irlook-SupeRx closing some local offices The Indianapolis News The new owner of Hook-SupeRx plans to sell 272 of the drug chain's stores and close administrative offices. Including some In Indianapolis. Revco D.C. Inc. completed Its acquisition of Hook-SupeRx and Is in the process of moving the Cincinnati-based Hook's to its new headquarters in Twinsburg, Ohio. Hook's once was based in Indianapolis and had maintained a regional office here. In combining the two operations, some of the Indianapolis regional offices will be closed, Revco spokesman Jim Mastrin said. However, the chain will maintain a small office here plus its massive distribution center. Jobs will be lost In the consolidation, but Mastrin said he is not sure how many. Employees were Informed that they would be out of work once the transition was completed. "It's unfortunate, but those offices have to be closed and the functions moved here," said Revco President D. Dwayne Hoven . On Monday, Hoven also said the company . would sell the Brooks Pharmancy chain of 219 stores in New England, 31 Hook-SupeRx stores in Michigan, 16 Hook-SupeRx stores in the Chicago area'and six deep-discount stores in the South. The stores were acquired Friday. "We think those stores should be picked up fairly rapidly." he said. Hoven also said Revco would close some of its remaining 2,130 stores during the next two years. W 1 1 :J I Scott SadyThe Indianapolis News Arthur Bryant (left), chairman of State Life Insurance, and Jerry Semler, chairman of American United Life Insurance, said Monday that the two insurers will combine some operations. AUL, State Life agree to merge operations By WILL HIGGINS The Indianapolis News Two Indianapolis insurance companies said Monday that they will form a "strategic alliance," combining some functions. American United Life Insurance Co. and State Life Insurance Co. will continue to operate separately, but AUL's directors will call the shots at State Life. AUL, with assets of $5.5 billion, is much larger than State Life, with assets of $280 million. Last year AUL earned $29.7 million on revenues of $1.1 billion. State Life earned $340,000 on revenues of $60 million. Claims processing and other administrative functions of the two companies will be combined at AUL's offices, a consolidation that will cut' operating costs at both concerns. The combination could lead to "a few Job losses short term" among State Life workers, said that insurer's chairman, Arthur Bryant. He and AUL Chairman Jerry Semler said the move would K i GM's Kokomo-based Delco Electronics, for example, supplies components to automakers such as Toyota. Its share of non-GM business has increased to more than 15 percent, from about 10 percent a year ago. Knight said Indianapolis plant officials have "visions" of non-Ford sales, "but at this point, we are not structured to do that," he said. During Ford's 1992 plant upgrade, the automaker received a five-year. $20 million tax abatement. Also, the Indiana Department of Commerce provided a $400,000 grant for Job training. Knight said that only some job training funds were being provided for this expansion. Biomet buys a medical supply firm The Associated Press TIMONIUM, Md. Biomet Inc. of Warsaw. Ind.. has reached agreement to purchase Kirschner Medical Corp. in a deal valued at about $40 million. Under the agreement, Biomet will buy all the outstanding shares of Kirschner common stock for $10.75 per share in cash or an equivalent value in Biomet com-. mon stock. The deal, signed Saturday, is subject to shareholder and government approval. The merger will make Kirschner a more competitive orthopedics products manufacturer, said Dr. Scott Harrison, chairman, president and chief executive of Kirschner. Kirschner. with about $72 million a year in sales, will remain an independent subsidiary within Biomet. Current management is expected to remain the same, Harrison said. The deal will allow Biomet, which posted sales of $335.2 million and profits of $64 million last year, to strengthen Its soft goods and orthopedic support products division. STEVEN AIR TRANSPORT has opened a terminal In Indianapolis. URINETTE INC. has named COMMUNICO as its marketing consultant and advertising agency. Urlnette is a manufacturer of female urinal plumbing fixtures and urinals for the handicapped. The company is in Pensacola, Fla. HOOTERS has opened a third restaurant In Indianapolis at 5314 W. 38th St. INLAND CONTAINER CORP. recently bought all the stock of Rand-Whitney Packaging Group of Boston for $57.5 million. ANDERSON ELECTRIC CORF. has been awarded two contracts for electrical renovation work. The company will renovate a building In the 4600 block of North Keystone Avenue, which the Visiting Nurse Service will occupy. The firm also will renovate the third floor of One Indiana Square Downtown. 'A In this practical workshop hundreds of Executives have learned: How empowerment impacts employee and business performance Methods to address changes in responsibility and authority Indianapolis Aug 24 Indianapolis Marriott CALL 1-800-758-8111 $250person,$200person w2 or more! "ijiititr '-f'f'tt'ji, 't" a W 3 Q Rates as low as 3.9 up to 48 months. Security System Power Windows, Door Locks andSunhoof Anti-Lock Brakes Dual Air Bags Leather Interior 4 yr 60,0130 Mm Warranty Roadside Assistance FreeLoanerCar INFINITE strengthen both companies and lead to more hiring in the future. Under the terms of the deal, Semler will become chairman of State Life's board of directors while remaining AUL chairman. AUL's directors, joined by Bryant and fellow State Life directors David Goodrich and Frank Walker, will compose the boards of both companies. Bryant will be State Life's president, and State Life's outgoing directors will become members of a State Life "advisory board" through early 1996. Both executives said policyholders will not notice the restructuring- The deal is subject to approval by state insurance regulators and by State Life's 35,000 policyholders at a special meeting scheduled for Sept. 12 at the company's headquarters. AUL's directors approved the arrangement Monday: State Life's signed off earlier this month. Founded In 1894, State Life is the newer of the two companies. AUL goes back to 1878. J 4 te'jtfww -. 2 A I IS'- a. i roadenyour horizons. You've come a long way since you first opened your doors. It hasn't been easy, but your business has prospered. T-iv it'c titnf tn cnrpaH JU1 wings aiiu uiuuuvn your horizons. . . NBU is nere itSJZZ .... "t 'V' to neip. you see, we understand your business isn't just your livelihood, it's your life. r Both small and medium sized businesses are important to NBD. That's why we have a team of over 20 specialists whose only purpose is to work with you to keep your business growing. ill 2d r weveopenea tnree community offices exclusively to serve the needs of businesses like yours. North Barbara Branic 266-6556 Central Don Skipworth 266-756 Call your nearest NBD business banker. He or she will discuss with you the ins and outs of getting the financing you will need to ensure your business will be as healthy tomorrow, as it is today. At NBD your business is bis business to us. NBD Bank Member FDIC South Greg Murray 266-53.7 I ' INI"

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