19 December 2012

Japanese-owned automotive supplier YH America to invest $5 million and add 10 jobs in Kentucky

- Japanese companies operate more than 150 facilities in Kentucky 
- Tax incentives up to $200,000 thru Business Investment program
- Tax benefits up to $70,000 thru Kentucky Enterprise Initiative Act

Frankfort, Ky. – 19 December 2012 – Governor Steve Beshear today announced YH America Inc. plans to expand manufacturing operations in Versailles, adding 10 new, full-time jobs and investing more than $5 million in the Commonwealth. 

“YH America puts a special emphasis on having the highest standards, and that is evident by the company’s successful growth in Versailles, with 10 new jobs and a $5 million investment,” said Gov. Beshear. “Our automotive industry is vital to our overall economic success, and YH America enhances our economic position and plays an important part of strengthening our network of Japanese-owned companies across Kentucky.” 

Kentucky is home to more than 440 motor vehicle-related facilities that employ nearly 72,000 people. Also, Japanese-owned companies operate more than 150 facilities in Kentucky and provide more than 34,000 full-time jobs. Kentucky has the second-highest Japanese foreign direct investment in the U.S. on a per capita basis. 

YH America’s Versailles facility currently employs 29 people and is the windshield sealant and related products division for the company. A subsidiary of the Yokohama Rubber Co. Ltd., YH America is a supplier of high performance glass bonding adhesive systems used for bonding stationary glass (windshields, back glass and side glass) into automobiles, buses and military vehicles. The expansion will add a second urethane sealant production line in Versailles, doubling the plant’s ability to meet customer demand in the Americas. 

“This is an exciting time for YH America and our division in particular,” said Al Harrington, operations manager for YH America. “This expansion will position us to accommodate future business growth while maintaining a consolidated base in Kentucky. Our manufacturing facility in Versailles is centrally located to service our automotive customers, which are located as far north as Canada and as far south as Alabama. YH America is committed to contributing to the unique quality of life shared by residents of the Bluegrass.” 

To encourage the investment and job growth in Versailles, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives up to $200,000 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. 

KEDFA also approved YH America for tax benefits up to $70,000 through the Kentucky Enterprise Initiative Act, which allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing equipment. 

Woodford County has also been certified by the Kentucky Workforce Investment Board as a Work Ready Certified Community. The certification is an assurance to business and industry that the community is committed to providing the highly skilled workforce required in today’s competitive global economy. 

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