BEREA, Ky. — Hitachi Astemo Americas Inc., one of Kentucky’s largest Tier 1 automotive suppliers, announced plans to expand its operation in Madison County with a $153 million investment creating 167 new, quality Kentucky jobs.
The project will see company leaders invest in the current manufacturing operation in Berea to support site improvements and renovations, including increased production lines and additional equipment. The facility’s expansion will include an additional 752,000 square feet on 62 acres and respond to increased market demand and growth within the EV industry. Hitachi’s investment will create 167 full-time jobs for Kentuckians, bringing the company’s total Kentucky employment across the Harrodsburg and Berea facilities to over 2,100 workers.
“As we approach 40 years of manufacturing in this great state, we are pleased to continue our commitment to growing here in Kentucky,” said Tim Clark, president of Hitachi Astemo Americas. “This announcement is a bold step toward vehicle electrification and embodies our new company name – Hitachi Astemo, which stands for Advanced Sustainable Technology for Mobility. Hitachi was founded based on a pioneering spirit and being in harmony with society. This next generation of automotive technology allows us to further that ambition, and we are proud to be able to do that in Berea.”
In January 2021, Hitachi Automotive Systems, Keihin, Showa and Nissin Kogyo completed a business merger and began their journey as the global mega-supplier of Hitachi Astemo. The company provides advanced mobility solutions in the areas of electric powertrains for automobiles, advanced chassis, autonomous driving/advanced driver assistance systems and systems for motorcycles. Headquartered in Tokyo, Japan, the company’s entry into the Americas began in 1972, with a Hitachi subsidiary established in Brazil. In the mid-1980s, Hitachi expanded into the U.S. market with its first factory in Kentucky. Today, the company serves as a global mega-supplier to some of the largest automobile manufacturers in the world. It has more than 20 manufacturing sites in the United States, Canada, Mexico and Brazil, with two locations in Kentucky.
This expansion adds to Kentucky’s thriving manufacturing sector, which administration-to-date has seen nearly 600 private-sector new-location or expansion projects commit to invest over $22.9 billion and create more than 30,000 jobs.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in March 2023 preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $2.4 million in tax incentives based on the company’s investment of $153 million and annual targets of:
- Creation and maintenance of 167 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $25.71, including benefits across those jobs.
Additionally, KEDFA approved Hitachi Astemo for up to $200,000 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, Hitachi Astemo 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.
