KSM Castings NC Inc Invests $45 Million To Establish Manufacturing Facility in Shelby, North Carolina
KSM plans to construct an 110,000 square foot production facility and install 8-10 high pressure die-casting machines. Products made at the new plant will include fully machined transmission, engine and steering parts. Potential future expansion could include the production of gearbox housings, and body and chassis applications that partly require additional production processes such as gravity die-casting and counter pressure casting.
Dr. Frank Boshoff, CEO of KSM Castings, said; “Our decision to invest in North Carolina is an important step towards the company's strategy to increase its global production footprint. The new facility in Shelby will enable us to expand our business with existing and new customers in the U.S. in the background of increasing demands for lightweight casting solutions that help our customers comply with stricter emission regulations and improve driving performance at the same time. We are fully convinced that the technology expertise provided by KSM Castings and the availability of a skilled manufacturing workforce in an emerging automotive cluster make a perfect match for achieving our future goals.”
The project was made possible in part by performance-based awards from the state’s Job Development Investment Grant Program and One North Carolina Fund. As among a package of incentives offered the firm, KSM Castings has been awarded a performance-based grant of up to $705,000 from the state’s One North Carolina Fund. This fund assists the state in industry recruitment and expansion by providing financial assistance through local governments to attract business projects deemed by the governor to be vital to a healthy and growing state economy. Receipt of the One North Carolina Fund grant is contingent upon state-certified proof of eligible job creation and fulfillment of a local funding match.
In addition, the state Economic Investment Committee voted today to award a Job Development Investment Grant to the company. Under the terms of the company’s JDIG award, KSM Castings is eligible to receive up to 12 annual grants equal to 65 percent of the state personal income tax withholdings from the eligible new jobs created since the date of the initial award. Receipt of each annual grant is based on state-certified proof that the company has fulfilled incremental job creation and capital investment requirements. Over 12 years, the JDIG award could yield aggregate benefits to KSM Castings of up to $2.86 million.
"My administration will work with businesses like KSM Castings to help them grow and expand jobs," said Governor Pat McCrory. "Today's job announcement shows that by working together and effectively leveraging our state's talent and resources, North Carolina can be a leader in manufacturing once again."
The company has experienced much growth recently and wants to expand into North Carolina to meet the needs of existing and new customers in the U.S. , North Carolina Department of Commerce officials said. “We at the North Carolina Department of Commerce want to partner with the business community and help them grow and expand jobs in our state,” said Sharon Decker, North Carolina Secretary of Commerce.
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