2015_TMMI_Highlander_Hybrid_4_million_65954_2524_lowUS supply chain services provider, Magnolia Automotive Services, is building a $4.4m logistics facility in Charlestown, Indiana to support the inbound supply of parts for Toyota production in the country.

Magnolia, which is a joint venture between James Group International and Toyota Tsusho America, will develop the site over the next five years at the River Ridge Commerce Center in Charlestown. The facility will receive parts from more than 100 North American suppliers, and sort and consolidate them for onward delivery to Toyota’s production facilities according to the company. In a statement Magnolia said it would be using just-in-time processes in line with the Toyota Production System (TPS).

It is the first automotive operation the company has established outside Mississippi.

“We are very excited by this opportunity to locate a new facility in Charlestown, Ind. and to continue our strong partnership with Toyota,” 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 honoured to be chosen as one of their supply chain logistics providers. We believe that Indiana, and especially Southern Indiana will be a great place for us to expand our business with Toyota.”

The company will benefit from up to $150,000 in conditional tax credits from the Economic Development Corporation with assistance from One Southern Indiana based on its job creation plans. The company plans to have created 27 jobs by 2017. One Southern Indiana is the combined Economic Development Council and Chamber of Commerce for Clark and Floyd Counties on the Indiana side of the Louisville, Kentucky metropolitan area

“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 “Had [New Albany] mayor Gahan not kept the dialogue going with company leaders, this project would have landed in an entirely other region or state.”