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Canada-Based Nova Steel USA Selects Bowling Green, Kentucky for Manufacturing Plant

10/30/2020
Nova Steel USA Inc., Canadian a steel processor, will invest $70 million to locate a tube manufacturing facility in Bowling Green, Kentucky. The project is expected to create 110 full-time jobs in the coming years.

The company purchased a 108,000-square-foot building in the Kentucky Transpark for their plant's new home. The project includes purchase and installation of equipment for precision rollforming, laser cutting, tube bending and fabrication, along with robotics and other technology.

The new location, Nova Steel's first in Kentucky, will represent an initial investment of over $20 million, creating 50 jobs. That portion is planned to open in summer 2021. According to state officials, two additional expansions planned within the next three-to-five years would grow the operation to 325,000 square feet, bringing the total investment to $70 million and total jobs to 110. The new state-of-the-art facility will allow the company to better support customers throughout the South and Central U.S.

"We are very excited to be growing our company in the state of Kentucky and want to thank all those who have worked to help us reach this important milestone," said Tom Stearns, corporate vice president of Nova Steel. "The new facility will produce a variety of automotive parts used in the production of pickup trucks and SUVs. We believe that Bowling Green is the ideal location to achieve our growth plans and look forward to a long and successful relationship with the community."

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $2 million in tax incentives based on the company's investment of $70 million and annual targets of creation and maintenance of 110 Kentucky-resident, full-time jobs across 10 years and paying an average hourly wage of $31 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.

Additionally, KEDFA approved Nova for up to $550,000 in tax incentives through the Kentucky Enterprise Initiative Act. 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. Nova Steel can also receive resources from the Kentucky Skills Network.

"Our state's primary metals industry continues to thrive despite the challenging economic climate. This significant investment by Nova Steel promises to bring over 100 well-paying jobs for Kentucky families in and around Bowling Green," Governor Andy Beshear said. "Team Kentucky is working to create a better future for all Kentuckians with quality job opportunities offering strong wages. Companies like Nova Steel are central to that effort, and we thank Nova Steel for its commitment to the commonwealth and our talented workforce."

Founded in Montreal, Canada, in 1979, Nova Steel has grown to include 20 locations throughout North America, including one facility in Michigan and four general line service centers in the Northeastern U.S. operating as American Steel & Aluminum. The company manufactures products for automotive, construction, mining, agriculture, transportation and other related industries.

Ron Bunch, president and CEO of the Bowling Green Area Chamber of Commerce said, "This level of investment and job creation is significant in Bowling Green and will add to our growing manufacturing sector," Bunch said. "In addition to our excitement relating to the Nova project, we are deeply appreciative to the leadership at Bowling Green Metalforming who supported them locating in our community."

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