Home » TMMK to invest $461 million in upgrades at Georgetown Toyota plant

TMMK to invest $461 million in upgrades at Georgetown Toyota plant

Company will transition 1,400 team members to direct jobs helps modernize and expand production capabilities
Toyota Motor Manufacturing Kentucky (TMMK) in Georgetown is Toyota’s largest vehicle manufacturing plant in the world, capable of producing 550,000 vehicles and more than 600,000 engines each year.

FRANKFORT, Ky. — Toyota Motor Manufacturing Kentucky (TMMK) in Georgetown will transition 1,400 indirect employees to direct Toyota roles and invest $461 million in upgrades, including preparation for future vehicle electrification, Gov. Andy Beshear announced Friday.

“Kentucky’s automotive industry is growing at a record pace, and Toyota Motor Manufacturing Kentucky is at the center of that growth,” Beshear said. “Toyota changed the landscape of manufacturing in our state when the Georgetown facility first opened more than 30 years ago, and now the company is preparing for future growth. I am thrilled that future will include Kentucky in a significant way.”

RELATED: Ford to invest $5.8 billion to build two Kentucky electric battery plants

The investment at TMMK will bring advanced manufacturing equipment and technologies, increase the plant’s operational speed and flexibility, and add a new 2.4-liter turbo engine line to support an expanded range of vehicles produced in North America. The project also includes a new, direct hire employment structure. Approximately 1,400 indirect team members, currently employed through Kelly Services, will be offered a direct Toyota position, along with all new hires.

The improvements will expand TMMK’s ability to produce new products, including future electrification.

“As Toyota’s most experienced assembly plant in the U.S., TMMK must transform physically and strategically to meet the changing needs of customers,” said Susan Elkington, president of TMMK. “I am confident in our highly skilled team members who drive us forward every day as we prepare for the future of advanced manufacturing, whatever the products might be.”

The Georgetown site was Toyota’s first plant in the U.S. to manufacture hybrid electric vehicles, in 2006, and recently announced it will assemble fuel cell modules for use in hydrogen-powered, heavy duty commercial trucks starting in 2023. The plant also plays a critical role in Toyota’s global electrification strategy, with an aggressive goal to offer electric or hybrid versions of every vehicle model by 2025.

With a total of $8.5 billion invested, TMMK is Toyota’s largest production facility globally and currently employs approximately 9,000 team members. Opened in 1988, more than 12 million vehicles have rolled off TMMK’s assembly lines, including America’s best-selling sedan (Camry) and best-selling SUV (RAV4). Current production capacity is approximately 550,000 vehicles and 600,000 engines annually, with a supplier base of more than 350 suppliers nationwide – including over 100 in Kentucky.

Kentucky’s automotive industry includes more than 525 facilities, employing over 100,000 people full-time. Including Toyota’s investment, automotive-related companies have announced over $6.5 billion in new investments this year and 6,900 full-time jobs for Kentuckians.

TMMK also has helped drive foreign-direct investment from Japanese-owned companies in the commonwealth. Currently, nearly 200 Japanese-owned manufacturing, service and technology-related facilities are located throughout the state, employing close to 47,000 people full time.

Scott County Judge/Executive Joe Pat Covington said TMMK will continue to be an important part of the local business community for years to come.

“The investment that Toyota continues to make in our community, region and state will provide the flexibility to adjust to the changing automotive market and confirms their confidence in Georgetown and Scott County as being a vital part of their vision for the future,” Judge/Executive Covington said. “On behalf of Scott County, we are grateful for the investment.”

Toyota’s investment furthers recent economic momentum in the commonwealth, as the state builds back stronger in response to the effects of the pandemic.

Today’s TMMK announcement brings total investment by Kentucky companies over the past two days to more than $1.26 billion in new investments, with over 1,700 full-time jobs in addition to Toyota’s 1,400 transitioned team members.

The Kentucky Economic Development Finance Authority (KEDFA) approved a supplemental project to an existing Kentucky Jobs Retention Act (KJRA) program agreement with Toyota. The performance-based agreement can provide up to $212.5 million in cumulative tax incentives based on the company’s total cumulative investment of $2.2 billion across the original and supplemental KJRA projects with an annual job target requirement of up to 8,250 over the term of the agreement.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.

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