HOPKINSVILLE, Ky. — Toyota Boshoku America Inc. (TBA) will invest more than $225 million to construct a new facility in Hopkinsville and create 157 quality jobs for Kentuckians.
The new facility will include a 365,400-square-foot building pad on 49 acres in Christian County. The plant will be the first TBA location globally to be considered a “Smart Plant.” The facility will employ innovative, cutting-edge technologies such as advanced robotics, planning and automation to streamline processes, reduce waste and enhance productivity to maximize efficiency and operations. By implementing these technologies, the company will create a more efficient and environmentally responsible operation that will serve as a model for others to follow. The new facility will be the company’s fifth location in the Commonwealth. Construction is expected to begin in June of this year and be completed in August 2024.
“Our company’s history in Kentucky started 35 years ago,” said Hidenori Ozaki, president and CEO at TBA. “Since that time, we have grown our presence in the state, including bringing our America’s region corporate headquarters to Erlanger 15 years ago. We believe Christian County and the city of Hopkinsville are the ideal locations for our next Kentucky site. We appreciate the Commonwealth of Kentucky, Christian County and Hopkinsville for their ongoing support of manufacturing in the state. We are excited to continue strengthening our relationship with the Commonwealth of Kentucky through the launch of this new facility.”
Toyota Boshoku Corp., one of the world’s premium interior systems suppliers and filter manufacturers, develops and produces interior, filtration and powertrain components. With its global headquarters in Kariya City, Japan, Toyota Boshoku is the parent company of TBA, which is based in Erlanger, Kentucky. TBA and its affiliates employ over 12,000 team members in 22 locations throughout the United States, Canada, Mexico, Brazil and Argentina. The company is a premier manufacturer of automotive interior systems, which include seats, door trim, headliners, substrate and carpet in addition to air and oil filters for a variety of customers such as Toyota, BMW and Subaru. In Kentucky, the company currently operates three full production plants, located in Bardstown, Harrodsburg and Lebanon. With the completion of this plant, TBA will employ over 1,100 Kentuckians across five locations throughout the Commonwealth.
This expansion adds to Kentucky’s thriving manufacturing sector, which includes more than 5,000 facilities and employs over 250,000 people statewide. Administration-to-date, more than 570 new location and expansion projects from manufacturers are expected to create nearly 28,000 full-time jobs with over $21 billion in new investments.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $6 million in tax incentives based on the company’s investment of over $225 million and annual targets of:
- Creation and maintenance of 157 Kentucky-resident, full-time jobs across 15 years; and
- Paying an average hourly wage of $40 including benefits across those jobs.
Additionally, KEDFA approved TBA for up to $500,000 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.
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, TBA can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.