20 November 2012

Japanese-owned Kobe Aluminum to invest $11 million and create 15 jobs in Kentucky

- JV of Kobe Steel Ltd., Mitsui & Co Ltd. and Toyota Tsusho Corporation
- Plant currently has 200 employees
- Tax incentives up to $325,000  

Bowling Green, Ky. – 20 November 2012 – Governor Steve Beshear today announced that Kobe Aluminum Automotive Products LLC is expanding operations in Bowling Green. The company plans to create 15 new, full-time jobs and invest $11 million in the construction of a new 39,000-square-foot building and the purchase of new equipment. 

Kobe Aluminum is a shining example of Kentucky’s thriving automotive industry,” said Gov. Beshear. “These 15 new jobs and an $11 million investment speak volumes about the confidence Kobe Aluminum has in Kentucky’s workforce and the success the company has enjoyed here in the Commonwealth.” 

Kobe Aluminum Automotive Products LLC, a joint venture of Kobe Steel Ltd., Mitsui & Co Ltd. and Toyota Tsusho Corporation, has been a resident of south central Kentucky since 2005. The plant currently has more than 200 full-time employees and has invested nearly $100 million in its Bowling Green facility since opening its doors. Kobe has added more than 50 employees to its payroll since 2011. 

There are 11 Kobe Steel subsidiaries in the United States, but the Bowling Green location is the only U.S. facility to forge aluminum suspension products for the automotive industry. The expansion project will manufacture the cast aluminum bars for compressors for air conditioning on vehicles. 

“We are excited to announce our expansion in south central Kentucky,” said Kobe representatives. “This region has been a great supporter of our company, and we’re committed to continuing to employ south central Kentucky residents and to investing in the region. We’re grateful for the assistance that our local, regional and state leaders have provided to us.” 

The Kobe Steel Group, a global enterprise built around Kobe Steel Ltd., founded in 1905, is engaged in business in a wide range of fields, with its major businesses concentrated on materials and machinery. The material businesses are comprised of iron and steel, welding, and aluminum and copper products, while machinery includes industrial and construction machinery, as well as natural resources and engineering and environmental solutions. Other important businesses are wholesale power supply and real estate. Mitsui & Co Ltd. and Toyota Tsusho Corporation are among the biggest Japanese trading firms. 

To encourage the investment and job growth in Bowling Green, the Kentucky Economic Development Finance Authority preliminarily approved the company for tax incentives up to $325,000 through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets. 

The Kentucky Cabinet for Economic Development is the primary state agency in Kentucky responsible for creating new jobs and new investment in the state. New business investment in Kentucky in 2010 totaled more than $2 billion with the creation of nearly 11,900 new jobs. 

Source: Kentucky Cabinet for Economic Development