A Japan-based spring manufacturer, NHK Spring Precision of America Inc., will invest $19 million to expand its Louisville, Kentucky, operations center, with plans to add 50 full-time employees.
NHK Louisville, a subsidiary of Japanese-owned NHK Spring Co. Ltd.,, 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-square-foot facility, which will expand operations for the existing 93,000-square-foot 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.”
As an incentive to encourage the investment and job growth in Louisville, the Kentucky Economic Development Finance Authority 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.
“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.
“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.”