Aisin U.S.A. Manufacturing is set to invest more than $16 million in equipment at its two Seymour plants.

The new machinery will be used to manufacture components for Toyota's Sienna and Highlander models, Betsy Cornett, finance section manager at Aisin, said Tuesday.

Although the investment will help the company retain its current work force and salary levels, no additional employees will be added, said Jim Plump, executive director of Jackson County Industrial Development Corp.

"This will support current levels but no new jobs will be created," Plump, speaking on behalf of Aisin, told Seymour Common Council members Tuesday night.

In January, Aisin announced an 11 percent reduction in hourly employees and a shortened workweek, in addition to professional layoffs it made in December.

Aisin currently employs 1,132 with a salary base of more than $48.6 million at Plant 1 on East Fourth Street Road and 72 employees with a salary base of more than $3 million at Plant 2 on Burkart Boulevard.

According to the JCIDC Web site, Aisin continues to be Jackson County's top industrial employer.

Council unanimously approved the company's requests for two 10-year tax abatements on the new manufacturing equipment as well as statement of benefits at their meeting Tuesday night. That meeting was rescheduled from Monday because of Memorial Day.

Councilmen Jim Rebber and Lloyd Hudson did not attend Tuesday's meeting.

The biggest portion of the investment will be at Plant 1 with new equipment totaling more than $13.4 million. Plant 2 will receive nearly $4 million in machinery.

According to statement of benefits forms filed by Aisin, the project is expected to begin June 15 and be completed July 31, 2011.

Earlier this month, Aisin received council's approval of compliance of statement of benefits for previously awarded abatements.

Because of layoffs stemming from the struggling auto industry, employment and investment predictions were not met, said Keith Wharf, executive vice president of operations.

"We do anticipate those projections will be closer by April 2010," he said.

A steady national decline in auto sales forced the company to reduce its employees from 1,608 to just over 1,200.

Hudson said at the meeting earlier this month that he understood the economy was having a negative impact on Aisin's ability to hire and maintain employment levels.

"But you did hit your targets prior to this downturn," he said. "We realized employment would be down."

Wharf remained positive about the company's future, however.

"Orders are increasing and if the economy continues to show signs of improvement, then maybe we have finally hit bottom and hopefully will be able to increase employment in the near future," he said.

Also receiving approval for a tax abatement and statement of benefits Tuesday was Quality By Design Inc., a pharmaceutical packaging company located on Killion Avenue.

Company President Baron Bullard said Quality would be investing more than $340,000 in new manufacturing equipment and technology for blister packaging for various nutriceutical and pharmaceutical products.

Jim Plump, also speaking for Quality said the investment was expected to create three new jobs.

"They are looking to hire three additional people," Plump said. "They currently employ 18."

Originally the company had included $4,500 for laptop computers in its abatement request, but withdrew the amount because the life expectancy of the computers is less than the 10-year abatement.