FRANKFORT, Ky. – Nova Steel USA Inc. plans to locate a tube manufacturing facility in Bowling Green, a $70 million investment that is expected to create 110 full-time jobs in the coming years.
“Our state’s primary metals industry continues to thrive despite the challenging economic climate. This significant investment by Nova Steel promises to bring over 100 well-paying jobs for Kentucky families in and around Bowling Green,” said Gov. Andy Beshear during a virtual event Thursday with Nova Steel executives and local leaders.
Company executives bought a 108,000-s.f. building in the Kentucky Transpark for their plant’s new home. The project includes purchase and installation of equipment for precision rollforming, laser cutting, tube bending and fabrication, along with robotics and other technology.
“This level of investment and job creation is significant in Bowling Green and will add to our growing manufacturing sector.” – Ron Bunch, president and CEO of the Bowling Green Area Chamber of Commerce
The new location – Nova Steel’s first in Kentucky – will represent an initial investment of over $20 million, creating 50 jobs. That portion is planned to open in summer 2021. Two additional expansions planned within the next three-to-five years would grow the operation to 325,000 s.f., bringing the total investment to $70 million and total jobs to 110. The new state-of-the-art facility will allow the company to better support customers throughout the South and Central U.S.
“We are very excited to be growing our company in the state of Kentucky and want to thank all those who have worked to help us reach this important milestone,” said Tom Stearns, corporate vice president of Nova Steel. “The new facility will produce a variety of automotive parts used in the production of pickup trucks and SUVs. We believe that Bowling Green is the ideal location to achieve our growth plans and look forward to a long and successful relationship with the community.”
Founded in Montreal, Canada, in 1979, Nova Steel has grown to include 20 locations throughout North America, including one facility in Michigan and four general line service centers in the Northeastern U.S. operating as American Steel & Aluminum. The company manufactures products for automotive, construction, mining, agriculture, transportation and other related industries.
Nova Steel joins Kentucky’s primary metals industry, which includes more than 220 facilities employing over 25,000 people. The industry consists of producers and downstream processors of steel, stainless steel, iron, aluminum, copper and brass.
Nova Steel also ranks as the 35th Canadian-owned facility operating in Kentucky, a group representing industries as diverse as pet food manufacturing, professional engineering, barbecue grill manufacturing and health care tech development. Canada is Kentucky’s fourth-largest international investor alongside Japan, Germany and France, respectively.
In total, Kentucky is home to more than 500 internationally owned facilities representing 32 nations. In total, foreign-owned manufacturing, service and tech companies employ over 112,000 people in Kentucky, making the state No. 1 in international employment.
The Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $2 million in tax incentives based on the company’s investment of $70 million and annual targets of:
- Creation and maintenance of 110 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $31 including benefits across those jobs.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
Additionally, KEDFA approved Nova for up to $550,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.
Nova Steel also can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.
Add Comment