GLASGOW, Ky. — Nemak USA Inc., a manufacturer of innovative lightweight products for powertrain, e-mobility, and structure applications, announced it will create 170 well-paying jobs with a $27 million expansion of its Nemak Kentucky operation in Glasgow to support future electric vehicle-related business.
Nemak’s investment will support building upgrades and new, state-of-the-art equipment at its facility on Prestwick Drive. The expansion will support new EV-related business and better position the operation for future contracts.
The project also will increase the company’s training efforts for current and new employees in partnership with Southcentral Kentucky Community and Technical College and Western Kentucky University. Company leaders expect production of new parts to begin in early next year, with full production slated for Q3 2022.
The company operates a second facility in Glasgow on American Avenue. Nemak has operated in Barren County since 2012.
Established in Mexico in 1979, Nemak manufactures innovative lightweight products for powertrain, e-mobility, and structure applications for the automotive industry. Nemak Kentucky supports other companies in the state, as 20% of its spending in 2020 went toward products sourced from suppliers in the commonwealth. In addition to its Kentucky presence, Nemak has U.S. locations in Alabama, Michigan, Tennessee and Wisconsin. The company employs over 22,000 people at 38 facilities in 15 countries.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) last week preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $2.5 million in tax incentives based on the company’s investment of $27 million and annual targets of:
- Creation and maintenance of 170 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $35 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.
In addition, Nemak can receive resources from Kentucky’s workforce service providers. These include no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.
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