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Area Development - Site Selection, Facility Planning and Workforce Development

Hitachi Astemo Americas Expands Madison County, Kentucky, Operations

07/13/2023
Tier 1 automotive supplier Hitachi Astemo Americas Inc. plans to expand its operation in Madison County, Kentucky. The $153 million project is expected to create 167 jobs.

The investment will include an additional 752,000-square-feet on 62 acres and comes in response to increased market demand and growth within the EV industry.

“As we approach 40 years of manufacturing in this great state, we are pleased to continue our commitment to growing here in Kentucky,” said Tim Clark, president of Hitachi Astemo Americas. “This announcement is a bold step in the direction of vehicle electrification and embodies our new company name – Hitachi Astemo, which stands for Advanced Sustainable Technology for Mobility. Hitachi was founded on the basis of a pioneering spirit and being in harmony with society. This next generation of automotive technology allows us to further that ambition, and we are proud to be able to do that in Berea.”

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in March 2023 preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $2.4 million in tax incentives based on the company’s investment of $153 million and annual targets of creation and maintenance of 167 Kentucky-resident, full-time jobs across 10 years, and paying an average hourly wage of $25.71 including benefits across those jobs.

Additionally, KEDFA approved Hitachi Astemo for up to $200,000 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.

“The unprecedented economic momentum we are seeing throughout Kentucky is not possible without growth from some of our largest industries,” noted Governor Andy Beshear. “Manufacturing and the automotive sector have long been staples of the commonwealth’s economy, and with the rapidly growing EV sector bringing quality jobs and investments to our communities, we are setting Kentucky up for sustained success. I want to thank the leaders at Hitachi Astemo for their commitment to the commonwealth and look forward to their continued success in Berea.”

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.

In addition, Hitachi Astemo can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

“The city of Berea is thrilled to see Hitachi expand here in our community,” added Donna Angel, business development director for the Business and Economic Development Office of the city of Berea. “Hitachi Astemo is at the forefront of developing the newest technology in parts for automotive and other EV engines! This new line of services will not only enhance the automotive industry in the region but will highlight Berea and its various community strengths while offering important, quality jobs to our residents. This positions us for future economic growth and sustainability.”

Hitachi Astemo provides advanced mobility solutions in the areas of electric powertrains for automobiles, advanced chassis, autonomous driving/advanced driver assistance systems and systems for motorcycles. The company has more than 20 manufacturing sites in the U.S, Canada, Mexico and Brazil, with two locations in Kentucky.

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