Daehan Solution Nevada, LLC - Nevada Governor`s Office of

Board Summary
Daehan Solution Nevada, LLC
Date: March 16, 2017
9101 County Road 26, Hope Hull, AL 36043
Yong Kee Chun, President
Manufacturing
Business Type: New
County: Lyon County
Main Location: Carson City, Nevada
Development Authority Representative: Stan Thomas, EDAWN
APPLICATION HIGHLIGHTS
- Daehan Solution Nevada, LLC is a subsidiary of Daehan Solution. The parent company was established in 1983 and is headquarted in Incheon, Korea.
The company employs 5,985 staff across its plants in Korea, USA, China, Mexico, and Indonesia.
- The company will lease a 323,520 square foot facility in Lyon County.
- The company plans to hire and train employees from the local area and commence operations by the target date of March 2017.
PROFILE
Daehan Solution is an award winning company specializing in the design, engineering and manufacturing of Noise, Vibration and Harshness (NVH) products
and other automotive components for Automakers. The company's NVH products reduce vehicular interior and exterior noise and neutralize noise
influencers from the early stages of vehicle development. Daehan Solution's Nevada, LLC's Lyon County facility will produce automotive components and
will be equipped with high performance machinery, presses, ovens, waterjets and, assembly robots. The company's current customers include Chevrolet,
Kia Motors, Hyundai, General Motors, Chrysler, and Toyota. Daehan is a Tier #1 Supplier for Hyundai Motor’s first US plant in Alabama. Source: Daehan
Solution Nevada, LLC
SIGNIFICANCE OF ABATEMENTS IN THE COMPANY'S DECISION TO RELOCATE/EXPAND
Deahan Solution's decision to locate operations in Lyon County is due to several factors, including the business tax structure, cost of living, and logistical
advantages offered by the region. In addition, the company is aware of the benefits of Nevada's incentive programs, and this is a critical factor in deciding to
locate the automotive components operations to the state. Source: Daehan Solution Nevada, LLC
REQUIREMENTS
Job Creation
Average Wage
Equipment Capex (SU & MBT)
Equipment Capex (PP)
INCENTIVES
Sales Tax Abmt.
Modified Business Tax Abmt.
Personal Property Tax Abmt.
Total
Statutory
Application
Sufficient
% Over / Under
10
$18.96
$250,000
$1,000,000
231
$15.18
$26,806,710
$26,806,710
Yes
No
Yes
Yes
2210%
-20%
10623%
2581%
Requested Terms
Estimated $ Amount
Abated to 2% for 2 years
50% for 4 years
50% for 10 years
$1,367,142
$176,079
$974,316
$2,517,537
Contracted
24-Month Projection
5-Year Projection
10
231
268
Land
Building Purchase
BTS / Building Improvements
$0
$0
$0
Total
Construction
322
$102,637,169
$295,421,449
0
$0
JOB CREATION
OTHER CAPITAL INVESTMENT
ECONOMIC IMPACT ESTIMATES (10-Year Cumulative)
Total Jobs Supported
Total Payroll Supported
Total Output Estimate
$0
Estimate includes jobs, payroll & output by the company assisted as well as the secondary impacts to other local businesses.
NEW TAX REVENUE ESTIMATES (10-Year Cumulative)
Local Taxes
Property
Sales
Lodging
State Taxes
Property
Sales
Modified Business
Lodging
Total
IMPACT ASSESSMENT
Direct
Indirect
Total
$2,098,062
$0
$0
$3,514,505
$886,556
$12,172
$5,612,567
$886,556
$12,172
$103,834
$536,134
$875,321
$0
$3,613,351
$318,359
$636,351
$301,289
$507
$5,669,739
$422,193
$1,172,485
$1,176,610
$507
$9,283,090
Economic Impact per Abated Dollar
$117
EMPLOYEE BENEFITS
- Percentage of health insurance plan covered by company: 70%.
- Health care package cost per employee - $7,000 annually with options for dependents.
- Overtime, PTO/Sick/Vacation
NOTES
- Percentage of market outside of Nevada: 100%.
New Total Tax per Abated Dollar
$3.69
January 17, 2017
Director Steve Hill
Governor’s Office of Economic Development
808 West Nye Lane
Carson City, NV 89703
Re: Daehan Solution Nevada, LLC
Dear Steve:
EDAWN hereby supports the application of Daehan Solution Nevada, LLC. for the Sales & Use Tax Abatement,
Modified Business Tax Abatement, and Personal Property Tax Abatement incentives.
Daehan Solution Nevada, LLC develops, designs, manufactures and sells noise vibration and harshness (NVH)
products for the automotive industry. The company is looking to open a production operation in Lyon County.
The company will be investing approximately $26,806,710 for capital equipment in the first 2 years and
plans to hire 231 employees within the first 2 years at an average wage of $15.18 per hour.
The company’s compensation package includes medical and dental benefits, overtime, PTO/sick/vacation, bonus,
retirement plan /401K. Employee health insurance is covered 70% by the company and commences on the date of
hire.
EDAWN supports this application as the company meets two of three incentive requirements. Your consideration
and support of the incentive application for Daehan Solution Nevada, LLC is a significant factor in their pending
decision to expand in northern Nevada and speaks favorably to the State’s business-friendly environment.
Sincerely,
Stan Thomas
EDAWN, Executive Vice-President
Business Development
www.edawn.org | 5190 Neil Road, Suite 110 | Reno, NV 89502 | (p) 775.829.3700 or 800-256-9761 | (f) 775-829-3710
Daaehan Solu
ution Nevvada, LLC
12 Januarry, 2017
Governor''s Office of Ecconomic Deveelopment
808 West Nye Lane
Carson Ciity, NV 897033
Dear Com
mmission Mem
mbers:
Daehan Solution
S
Nevadda, LLC is enggaged in the business
b
of developing, deesigning, mannufacturing and
selling NV
VH (Noise Vibration and Haarshness) prodducts and othher automotivee componentss for Automakkers.
The plan is
i to locate in Lyon County Nevada. We plan to hire aand train employees from thhe local Renoo
area, and begin to mannufacture autoomotive components at the Lyon Countyy facility. The ttarget date foor the
operationss to commencce is March 20017.
Daehan Solution
S
Nevadda, LLC has facilities
f
such as PU Disperrsing Machinee, Press, Oveen, Waterjet,
Assemblyy Robot and soo on. The deccision to locatee operation too Lyon Countyy was due to sseveral factorrs,
including the
t business tax structure, cost of living and logistic aadvantages offfered by the region. In adddition,
Daehan Solution
S
Nevadda, LLC is aw
ware of the bennefits of the S
State Incentivee Program, annd this also w
was a
critical facctor in deciding to locate thee automotive components operations to Lyon Countyy.
The location plan to Lyoon County invvolves producction operationn of automotivve components for facility aand
investmennts. In order too staff and operate our opeerations, the pplan is to hire a total of 231 employees. TThe
average hourly
h
rate of the
t employeees is projectedd to be $ 15.188. We are exccited about the market
opportunitties presentedd by this locattion and the advantages thaat locating thiis facility in Lyyon County will
offer our company.
c
In conjunction
c
with Nevada's business
b
frienndly environment, we see thhis as a first sstep
in what wiill be increaseed growth for Daehan
D
Soluttion Nevada, LLC.
Sincerely,
Yong Keee Chun
President,
Daehan Solution
S
Nevadda, LLC
Company is an / a: (check one)
New location in Nevada
Incentive Application
Company Name:
DAEHAN SOLUTION NEVADA , LLC
Date of Application:
January 12, 2017
Expansion of a Nevada company
Section 1 - Type of Incentives
Please check all that the company is applying for on this application:
Sales & Use Tax Abatement
S
Sales & Use Tax Deferral
Modified Business Tax Abatement
M
Recycling Real Property Tax Abatement
Personal Property Tax Abatement
P
Other:
Section 2 - Corporate Information
COMPANY NAME (Legal name under which business will be transacted in Nevada)
FEDERAL TAX ID #
Daehan Solution, LLC
CORPORATE ADDRESS
CITY / TOWN
STATE / PROVINCE
ZIP
9101 County Rd 26
Hope Hull
AL
36043
MAILING ADDRESS TO RECEIVE DOCUMENTS (If different from above)
CITY / TOWN
STATE / PROVINCE
ZIP
Same as above
TELEPHONE NUMBER
WEBSITE
334 404 5000
http://www.dhsol.com/
COMPANY CONTACT NAME
COMPANY CONTACT TITLE
Yong Kee Chun
President
E-MAIL ADDRESS
PREFERRED PHONE NUMBER
[email protected]
334 398 1154
Has your company ever applied and been approved for incentives available by the Governor's Office of Economic Development?
Yes
Y
No
If Yes, list the program awarded, date of approval, and status of the accounts (attach separate sheet if necessary):
Section 3 - Program Requirements (EDAWN 㣅㉥)
Please check two of the boxes below; the company must meet at least two of the three program requirements:
A capital investment of $1,000,000 in eligible equipment in urban areas or $250,000 in eligible equipment in rural areas are required. This criteria is
businesses. In cases of expanding businesses, the capital investment must equal at least 20% of the value of the tangible property owned by the
business.
New businesses locating in urban areas require fifty (50) or more permanent, full-time employees on its payroll by the eighth calendar quarter
quarter in which the abatement becomes effective. In rural areas, the requirement is ten (10) or more. For an expansion, the business must increase
employees on its payroll by 10% more than its existing employees prior to expansion, or by 25 (urban) or 6 (rural) employees, whichever is
greater.
In urban areas, the average hourly wage that will be paid by the business to its new employees is at least 100% of the average statewide hourly
in rural areas, the average hourly wage will equal or exceed the lesser of the county-wide average hourly wage or statewide average hourly
wage.
Note: Criteria is different depending on whether the business is in a county whose population is 100,000 or more or a city whose population is 60,000 or more (i.e.,
“urban” area), or if the business is in a county whose population is less than 100,000 or a city whose population is less than 60,000 (i.e., “rural” area).
Section 4 - Nevada Facility
Type of Facility:
Headquarters
Technology
Back Office Operations
Research & Development / Intellectual Property
Service Provider
Distribution / Fulfillment
Manufacturing
Other:
PERCENT OF COMPANY'S NEVADA LOCATION MARKET OUTSIDE OF
NEVADA
EXPECTED DATE OF NEW / EXPANDED OPERATIONS (MONTH / YEAR)
100%
March, 2017
NAICS CODE / SIC
INDUSTRY TYPE
Manufacturing
DESCRIPTION OF COMPANY'S NEVADA OPERATIONS
Production operations for automotive components
PROPOSED / ACTUAL NEVADA FACILITY ADDRESS
CITY / TOWN
COUNTY
ZIP
1600 E. Newlands Dr,
Fernley
Lyon County
89408
WHAT OTHER STATES / REGIONS / CITIES ARE BEING CONSIDERED FOR YOUR COMPANY'S RELOCATION / EXPANSION / STARTUP?
None
1
Section 5 - Complete Forms (see additional tabs at the bottom of this sheet for each form listed below)
Check the applicable box when form has been completed.
5 (A)
Equipment List
5 (B)
Employment Schedule
5 (C)
Evaluation of Health Plan
Section 6 - Real Estate & Construction (Fill in either New Operations/Startup or Expansion, not both.)
New Operations / Start Up - Plans Over the Next Ten Years
Expansions - Plans Over the Next 10 Years
Part 1. Are you currently/planning on
leasing space in Nevada?
Part 1. Are you currently leasing space in Nevada?
Yes
If No, skip to Part 2. If Yes, continue below:
What year(s)?
If No, skip to Part 2. If Yes, continue below:
What year(s)?
How much space (sq. ft.)?
7
How much space (sq. ft.)?
323,520
Annual lease cost at current space:
Annual lease cost of space: $1,389,883.75
Do you plan on making building tenant improvements?
Due to expansion, will you lease additional space?
Yes
If No, skip to Part 3. If Yes, continue below:
If No, skip to Part 2. If Yes * , continue below:
When to make improvements (month, year)?
Expanding at the current facility or a new facility?
March,2017
What year(s)?
How much expanded space (sq. ft.)?
Part 2. Are you currently/planning on
buying an owner occupied facility in Nevada?
Annual lease cost of expanded space:
No
Do you plan on making building tenant improvements?
If No, skip to Part 3. If Yes * , continue below:
If No, skip to Part 3. If Yes * , continue below:
Purchase date, if buying (month, year):
When to make improvements (month, year)?
How much space (sq. ft.)?
Do you plan on making building improvements?
Part 2. Are you currently operating at an
If No, skip to Part 3. If Yes * , continue below:
owner occupied building in Nevada?
When to make improvements (month, year)?
If No, skip to Part 3. If Yes, continue below:
How much space (sq. ft.)?
Part 3. Are you currently/planning on
building a build-to-suit facility in Nevada?
Current assessed value of real property?
No
Due to expansion, will you be making building improvements?
If Yes * , continue below:
If No, skip to Part 3. If Yes * , continue below:
When to break ground, if building (month, year)?
Estimated completion date, if building (month, year):
When to make improvements (month, year)?
How much space (sq. ft.)?
Part 3. Do you plan on building or buying a
new facility in Nevada?
If Yes * , continue below:
Purchase date, if buying (month, year):
When to break ground, if building (month, year)?
Estimated completion date, if building (month, year):
How much space (sq. ft.)?
* Please complete Section 7 - Capital Investment for New Operations / Startup.
* Please complete Section 7 - Capital Investment for Expansions below.
BRIEF DESCRIPTION OF CONSTRUCTION PROJECT AND ITS PROJECTED IMPACT ON THE LOCAL ECONOMY (Attach a separate sheet if necessary):
TBD
2
Section 7 - Capital Investment (Fill in either New Operations/Startup or Expansion, not both.)
New Operations / Start Up
Expansions
How much capital investment is planned? (Breakout below):
How much capital investment is planned? (Breakout below):
Building Purchase (if buying):
Building Costs (if building / making improvements):
$0
TBD
Land:
Building Purchase (if buying):
$0
Building Costs (if building / making improvements):
$0
Land:
$0
Equipment Cost:
$26,806,710
$0
Equipment Cost:
$0
Total:
$26,806,710
Total:
$0
Is the equipment purchase for replacement
of existing equipment?
Current assessed value of personal property in NV:
(Must attach the most recent assessment from the County Assessor's Office.)
Section 8 - Employment (Fill in either New Operations/Startup or Expansion, not both.)
New Operations / Start Up
Expansions
How many full-time equivalent (FTE*) employees will be created by the
231
end of the first eighth quarter of new operations?:
Average hourly wage of these new employees:
$15.18
How many full-time equivalent (FTE*) employees will be created by the
end of the first eighth quarter of expanded operations?:
Average hourly wage of these new employees:
How many FTE employees prior to expansion?:
Average hourly wage of these existing employees:
Total number of employees after expansion:
* FTE represents a permanent employee who works an average of 30 hours per week or more, is eligible for health care coverage, and whose position is a "primary job" as
set forth in NAC 360.474.
OTHER COMPENSATION (Check all that apply):
Overtime
PTO / Sick / Vacation
Merit increases
COLA adjustments
Tuition assistance
Retirement Plan / Profit Sharing / 401(k)
Bonus
Other:
BRIEF DESCRIPTION OF ADDITIONAL COMPENSATION PROGRAMS AND ELIGIBILITY REQUIREMENTS (Attach a separate sheet if necessary):
TBD
Section 9 - Employee Health Insurance Benefit Program
Is health insurance for employees and an option for dependents offered?:
Yes (copy of benefit plan must be attached)
Package includes (check all that apply):
Medical
Qualified after (check one):
Upon employment
Vision
Other:
Dental
Three months after hire date
Six months after hire date
Health Insurance Costs:
Cost of health insurance for company (annual amount per employee):
Health Plan annual out-of-pocket maximum (individual):
Other:
Percentage of health insurance coverage by:
$7,000
$1,750
Company:
Employee:
[SIGNATURE PAGE FOLLOWS]
3
70%
30%
No
Site Selection Factors
Company Name: DAEHAN SOLUTION NEVADA , LLC
County: Lyon County
Section 1 - Site Selection Ratings
Directions: Please rate the select factors by importance to the company's business (1 = very low; 5 = very high). Attach this form to the Incentives
Application.
Availability of qualified workforce:
Labor costs:
Real estate availability:
Real estate costs:
Utility infrastructure:
Utility costs:
4
4
4
4
5
5
Transportation infrastructure:
Transportation costs:
State and local tax structure:
State and local incentives:
Business permitting & regulatory structure:
Access to higher education resources:
OTHER FACTORS & RATINGS:
5
5
5
4
5
5
4
5(A) Capital Equipment List
Company Name: DAEHAN SOLUTION NEVADA , LLC
County: Lyon County
Section 1 - Capital Equipment List
Directions: Please provide an estimated list of the equipment [columns (a) through (c)] which the company intends to purchase over the two-year
allowable period. For example, if the effective date of new / expanded operations begins April 1, 2015, the two-year period would be until March
31, 2017. Add an additional page if needed. For guidelines on classifying equipment, visit:
tax.nv.gov/LocalGovt/PolicyPub/ArchiveFiles/Personal_Property_Manuals. Attach this form to the Incentives Application.
(a)
Equipment Name/Description
PU dispersing machine
PU dispersing machine robot
PU dispersing machine carosol , demold agent spray system , etc
Press 200 Ton
Press 200 Ton moving
Press 150 Ton
Press 50 Ton
Oven 1step mesh belt ( TPE Forming etc )
Oven 2step mesh belt ( TPE Forming etc )
Waterjet
Waterjet jig
Waterjet robot
Assembly robot
Chillar ( for forming press )
Carpet cooling jig machine
Carpet auto-assembly machine and sub machines
Carpet High Frequency Welding machine
Dash inr assembly machine
Trunk side trim assembly machine
Trunk carpet assembly machine
Parcel Shelf assembly machine
Parcel Shelf vibration welding machine
Parcel Shelf punching machine
Parcel Shelf bending machine
Utility
Transport fee &
Facilities (Racks)
Facilities (Others)
Vehicles
ERP Systems
Networks (EDI, CCTV, Soft ware Programs)
Test Eqipments
Furnitrue & Fixture
( b)
# of Units
(c)
Price per Unit
(d)
Total Cost
5
5
5
9
2
9
8
6
13
9
9
22
12
25
2
2
2
2
2
2
2
2
2
2
1
1
2,420
46
1
76
1
19
203
$150,000.00
$130,000.00
$170,000.00
$180,000.00
$250,000.00
$150,000.00
$120,000.00
$160,000.00
$180,000.00
$270,000.00
$25,000.00
$57,000.00
$60,000.00
$13,000.00
$80,000.00
$250,000.00
$50,000.00
$90,000.00
$240,000.00
$165,000.00
$175,000.00
$140,000.00
$65,000.00
$100,000.00
$1,070,000.00
$2,245,680.00
$1,450.00
$12,380.00
$100,000.00
$7,770.00
$520,000.00
$5,010.00
$2,280.00
$750,000.00
$650,000.00
$850,000.00
$1,620,000.00
$500,000.00
$1,350,000.00
$960,000.00
$960,000.00
$2,340,000.00
$2,430,000.00
$225,000.00
$1,254,000.00
$720,000.00
$325,000.00
$160,000.00
$500,000.00
$100,000.00
$180,000.00
$480,000.00
$330,000.00
$350,000.00
$280,000.00
$130,000.00
$200,000.00
$1,070,000.00
$2,245,680.00
$3,509,000.00
$569,480.00
$100,000.00
$590,520.00
$520,000.00
$95,190.00
$462,840.00
TOTAL EQUIPMENT COST
$26,806,710.00
Is any of this equipment* to be acquired under an operating lease?
*Certain lease hold equipment does not qualify for tax abatements
6
Y
Yes
N
No
5(B) Employment Schedule
Company Name:
DAEHAN SOLUTION NEVADA , LLC
County: Lyon County
Section 1 - Full-Time Equivalent (FTE) Employees
Directions: Please provide an estimated list of full time employees [columns (a) through (d)] that will be hired and employed by the
company by the end of the first eighth quarter of new / expanded operations. For example, if the effective date of new / expanded
operations is April 1, 2015, the date would fall in Q2, 2015. The end of the first eighth quarter would be the last day of Q2, 2017 (i.e., June
30, 2017). Attach this form to the Incentives Application.
A qualified employee must be employed at the site of a qualified project, scheduled to work an average minimum of 30 per week, if offered
coverage under a plan of health insurance provided by his or her employer, is eligible for health care coverage, and whose position of a
“primary job” as set forth in NAC 360.474.
(a)
(b)
(c)
(d)
(e)
(f)
Number of Average Hourly Average Weekly Annual Wage per
New Hire Position Title/Description
Total Annual Wages
Positions
Wage
Hours
Position
Director
2
$71.60
40
$148,928.00
$297,856.00
Manager
8
$43.30
40
$90,064.00
$720,512.00
Office Worker
15
$30.80
40
$64,064.00
$960,960.00
Production Worker
206
$12.40
40
$25,792.00
$5,313,152.00
TOTAL
231
$15.18
$7,292,480.00
Section 2 - Employment Projections
Directions: Please estimate full-time job growth in Section 2, complete [columns (b) through (c)]. These estimates are used for state
economic impact and net tax revenue analysis that this agency is required to report. The company will not be required to reach these
estimated levels of employment.
(a)
Year
(b)
Number of FTE(s) Projected
3-Year
4-Year
5-Year
243
255
268
(c)
Average Hourly Wage
$15.42
$15.67
$15.92
7
(d)
Payroll
$7,793,884.80
$8,309,628.29
$8,872,988.50
DAEHAN SOLUTION Co., Ltd
Seeing the Sound, Designing the Sound.
Employee : 5,985
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(2013)
- N.V.H. System Engineering
- Interior Trim Products
(Carpet . Headliner. NVH parts . etc )
- Trunk Trim Products
- Bump Stopper
- Wire harness
- Raw materials
- Tooling & Jig
Business Scope
- Headquarters: Incheon, Korea
- Plants: 10 plants in Korea
4 plants in USA.( AL, GA,MI and 1 new plant)
1 plant in China.
1 plant in Indonesia.
1 plant in Mexico
Headquarters & Plants
Annualized Turnover : $ 835 millions
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Founded April 23rd, 1983
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Daehan Solution, as a manufacturer of automotive components and a supplier of
N.V.H. systems, offers full satisfaction to the customers
“World Best
Supplier in
Automotive
Industry”
Customer Satisfaction
Company Satisfaction
Employee Satisfaction
Harmony
Challenge
Creative
Vision
Mission Statement
Motto
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2010Y
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Sales by Year
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2012Y
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2013Y
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Malaysia
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Italy
Persico – Tooling & Process
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Technical License
Hyperlast
Great Britain,
Jakarta, Indonesia
Yantai, China
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Dash Insulation Pad
Dash Outer
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Engine Cover
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Headliner
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Carpet
Trunk Lid
Trunk Mat
Wheel House
Luggage Box
Auxiliary Mat
Pillar Boot Assembly
Sun visor
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Deflector
Package
Tray
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Mobile
I-65 Exit 158
Daehan Solution Alabama LLC
Selma
Birmingham
AL
I-85 Exit 2
GA Hwy18
Atlanta
Established: April 4 ,2008
Capital : 8 Mil. USD
Land : 35 Acres
Building : 262,000 Sq ft
Production Capacity: 400,000 vehicle/year
Product: N.V.H Package for Sorento,
Santafe & Optima
Employees: 270
2013 Sales : $135 Million
Location : West Point, GA
KMMG
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Daehan Solution Georgia LLC
GA Hwy103
Daehan Solution Georgia LLC
GA
Location
Established: April 4 ,2003
Capital : 10.8 Mil. USD
Land : 25 Acres
Building : 184,000 Sq ft
Production Capacity: 400,000 vehicle/year
Product: N.V.H Package for Sonata &
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Employees: 305
2013 Sales : $105 Million
Location : Montgomery, AL
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