Nisshin Automotive Tubing will invest $7.1 million to upgrade equipment, add a production line and expand its 38,600-square-foot manufacturing facility by an additional 23,500 square feet in Versailles, Kentucky.
"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."
Nisshin manufactures stainless steel tubes for automobile exhaust systems. As part of the expansion the plant will also produce gas tank filler systems for the automotive industry. The plant will 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 Japan-based Nisshin Steel, which produces products such as; coated steel, stainless steel, hot and cold rolled ordinary steel, and processed steel products such as roofing and siding.
While job creation estimates were not immediately available, as an incentive to encourage its investment, the Kentucky Economic Development Finance Authority preliminarily approved Nisshin Automotive for tax benefits up to $75,000 through the Kentucky Enterprise Initiative Act. The Act allows companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing equipment.
"I am excited that Nisshin is expanding its Versailles facility and adding new equipment," said Sen. Julian M. Carroll, of Frankfort. "This investment will provide new opportunities for the community, and we will continue to reap the rewards of economic growth and jobs. I also applaud Gov. Beshear for taking the lead to support our industry, their employees and their families."
"Five years ago, we visited Nisshin Steel in Japan to convey our appreciation for Nisshin's investment in Versailles," said 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."