Japanese-owned spring manufacturer to invest more than $19 million
FRANKFORT, Ky. (Dec. 19, 2012) – NHK Spring Precision of America Inc. (NHK Louisville) plans to expand operations in Louisville. The company plans to add 50 new, full-time jobs and invest more than $19 million.
“NHK Louisville continues to be a wonderful corporate citizen in the Commonwealth, and we’re thrilled to see 50 new jobs and a $19 million investment on the way,” said Gov. Steve Beshear.
NHK Louisville is a subsidiary of Japanese-owned NHK Spring Co. Ltd., the largest spring manufacturer in the world. The company manufactures springs for automobiles, industrial machinery and hard disk drives.
Located in Louisville since 2005, NHK currently has more than 80 employees. The company plans to complete construction in the summer of 2013 on a new, 57,000-s.f. facility, which will expand operations for the existing 93,000-s.f. plant. The expansion will provide major automotive manufacturers with goods and services worldwide.
“Kentucky, as well as the Louisville area, has become a major location for automotive suppliers with the close proximity of engine and assembly plants in and around the Commonwealth,” said Tomoyuki Chino, president and COO of NHK Spring Precision of America. “NHK Spring Precision of America would like to thank the great Commonwealth of Kentucky for all its support. I would like to give a special thanks to our employees, without you this expansion would not have been possible.”
NHK’s expansion is yet another success for Kentucky’s thriving auto industry, which boasts more than 440 motor vehicle-related facilities with almost 72,000 employees. Kentucky is also home to more than 420 foreign-owned companies from 30 nations, including more than 155 facilities with Japanese ownership. On a per capita basis, Kentucky has the second highest Japanese foreign direct investment in the country.
“NHK has been a great corporate partner here in our community, so this major expansion is certainly good news,” said state Rep. Charles Miller of Louisville. “This will further solidify Louisville’s reputation as an ideal location for companies in the automotive industry.”
Kentucky’s geographic location and density of major automotive OEMs provides a unique advantage for auto suppliers like NHK, said Eileen Pickett, vice president of economic development for Greater Louisville Inc.
“NHK’s expansion will allow them to continue to thrive and grow their relationships with OEMs throughout North America, as those firms continue to push for more domestically-based supply chains,” she said.
The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives up to $1 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.
KEDFA also approved NHK Louisville for tax benefits up to $100,000 through the Kentucky Enterprise Initiative Act, which allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing equipment.
For more information on NHK Louisville, click here.