Metalsa Structural Products Inc., a subsidiary of Mexico-based Grupo Proeza and manufacturer of chassis structures for light and commercial combustion engine, hybrid and battery electric vehicles, plans to expand its operations in Hopkinsville, Kentucky. The project is expected to create 97 full-time jobs over the coming years.
Metalsa plans to invest in improvements at its existing facility on Bill Bryan Boulevard in Hopkinsville, as well as adding new machinery and equipment. The expansion, expected to be completed by October 2022, will accommodate the installation of two new manufacturing lines to support customers in Michigan and Missouri. The company employs over 2,800 people at three facilities in Kentucky, including 605 in Christian County. The Hopkinsville operation opened in 1989, followed by the Elizabethtown plant in 1994 and an Owensboro facility in 1997.
"In the spirit of collaboration, we thank Governor Andy Beshear, the Commonwealth of Kentucky, its Cabinet for Economic Development, Christian County, South Western Kentucky Economic Development Council, the City of Hopkinsville and the Tennessee Valley Authority for this opportunity of economic growth," said Gustavo Andres, chief commercial and marketing officer at Metalsa. "Our expansion is significant because it allows us to support our customers' growing business and meet their demands while also supporting the growth of our community."
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) today preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1.5 million in tax incentives based on the company's investment of $39.1 million and annual targets of creation and maintenance of 97 Kentucky-resident, full-time jobs across 15 years, and paying an average hourly wage of $29 including benefits across those jobs.
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.
"The automotive industry will play a vital role in our efforts to build our economy back stronger than ever in Kentucky," Governor Andy Beshear said. "If we are going to have a strong economy well into the future, automotive companies, particularly a strong supplier base, will be essential in making that goal a reality. Metalsa is an important part of Team Kentucky with three facilities in Central and West Kentucky, and the company's continued growth is tremendously good news for our state."
Additionally, KEDFA approved Metalsa for up to $100,000 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. In addition, Metalsa can receive resources from the Kentucky Skills Network.
Currently, more than 525 automotive suppliers and four automotive assembly plants operate in Kentucky, employing over 100,000 people throughout the state. In 2020, auto-related companies announced 31 new location and expansion projects expected to create 970 full-time jobs with $256.8 million in announced investment.
"TVA and Pennyrile RECC congratulate Metalsa on its decision to expand operations in Christian County," said John Bradley, TVA's senior vice president of economic development. "It's always an exciting day when we can celebrate a company's commitment to continued growth in the Valley. We are proud to partner with South Western Kentucky EDC and the Kentucky Cabinet for Economic Development to support companies creating job opportunities and investment in the region."
Founded in 1956, Metalsa operates as a subsidiary of Grupo Proeza, a private company headquartered in Monterrey, Mexico, and employs more than 10,000 people globally. The company manufactures chassis structural components, and its products include frames, sub-frames and battery structures for pickup trucks, sport-utility vehicles and crossovers, and side rails and frames for heavy trucks and buses in the light and commercial combustion engine, hybrid and battery electric vehicle markets. Metalsa is an international company with a presence in North and South America and Asia, including seven locations in the U.S.