Automotive supplier to add 23,500 square feet, invest $7.1 million
FRANKFORT Ky. (July 27, 2012) – Nisshin Automotive Tubing LLC will invest $7.1 million to purchase and install equipment and expand its 38,600 s.f. manufacturing plant in Versailles. The company will add 23,500 s.f. to accommodate new equipment and a new production line.
“One of the key goals of my administration’s economic development efforts is to keep our existing companies competitive, and we’re thrilled to partner with Nisshin Automotive Tubing to ensure its lasting success in the commonwealth,” Gov. Steve Beshear said. “We’re excited to see this growth in a company that plays an important role in one of Kentucky’s key industries — the automotive sector.”
The company has 18 employees and currently manufactures stainless steel tubes for automobile exhaust systems, but as part of the expansion will also produce gas tank filler systems for the automotive industry. The plant will also install new equipment, such as a cutting machine and tubing mill.
“This expansion will not only increase our company’s capacity, but will also increase locally produced products which will be used in place of imported steel,” said Hiroshi Okamura, president Nisshin Automotive Tubing LLC.
Nisshin Automotive Tubing’s parent company is Nisshin Steel, which was incorporated in 1959 in Japan. Nisshin Steel currently produces a wide range of steel products, including coated steel, stainless steel, hot and cold rolled ordinary steel, as well as processed steel products such as roofing and siding.
Japanese-owned companies operate more than 150 facilities in Kentucky and provide more than 34,000 full-time jobs. Additionally, Kentucky has the second-highest Japanese foreign direct investment on a per capita basis.
The Kentucky Economic Development Finance Authority preliminarily approved Nisshin Automotive for tax benefits up to $75,000 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.
“Five years ago, we visited Nisshin Steel in Japan to convey our appreciation for Nisshin’s investment in Versailles,” said Versailles Mayor Fred Siegelman. “Again, we applaud Nisshin’s decision to expand operations in our community and give thanks to Gov. Beshear and the Cabinet for Economic Development for their assistance.”
For more information on Nisshin, visit www.nisshin-steel.co.jp/nisshin-steel/english/profile/profile.htm.