Investing $10.5 million into project
FRANKFORT, Ky. (July 18, 2016) — Sumitomo Electric Wiring Systems Inc. (SEWS), an automotive supplier, is investing nearly $10.5 million to establish a new production facility in Franklin. SEWS plans to create up to 145 new jobs over the next 10 years at the location.
To house the operation, the company is currently renovating a more than 65,000 square-foot building on Garvin Drive. The decision to locate in Franklin comes in response to an increase in demand SEWS anticipates from its automotive-industry customers throughout the next several years. Company leaders noted Franklin’s access to I-65, proximity to the SEWS Scottsville location and the region’s workforce as deciding factors in selecting the site.
“I am pleased Sumitomo Electric Wiring Systems will continue to grow its Kentucky presence,” Gov. Matt Bevin said. “Sumitomo’s Franklin plant will be the fifth location in the commonwealth and will work closely with the Scottsville facility less than 30 miles away. We welcome the newest SEWS addition and are grateful for their continued investment in the Bluegrass state.”
The Japan-based Sumitomo family of companies owns SEWS, a global supplier of automotive electrical systems. Sumitomo established SEWS in 1986 as a joint venture between Sumitomo Electric Industries and Sumitomo Wiring Systems. SEWS maintains its U.S. headquarters in Bowling Green and operates facilities in Edmonton, Lexington and Scottsville.
Last year, SEWS broke ground on a 440,000-square-foot plant on Remington Way in Lexington to consolidate its two existing Lexington operations. That $8.5 million project will create up to 10 new jobs and will double the company’s Lexington footprint. The company anticipates the location will better serve customers and provide ample space for future growth.
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in April preliminarily approved the company for tax incentives up to $1.36 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.
Additionally, KEDFA approved SEWS for up to $30,000 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.
SEWS can also receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies are eligible to receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. Last year, the Kentucky Skills Network trained more than 84,000 employees from more than 5,600 Kentucky companies.