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Kobe Aluminum Automotive Products Invests $57 Million To Expand Facility In Bowling Green, Kentucky

Kobe Aluminum Automotive Products LLC, a supplier for the automotive industry, will invest $57 million to expand its manufacturing complex and add 112 associates at its facility in Bowling Green, Kentucky.

The more than 116,000-square-foot addition will provide KAAP with capacity for substantial equipment upgrades. The company anticipates growing its business in coming years, and the expansion will support those changes. Construction will begin in December and is expected to be finished by October 2016.

Japan-based KAAP began production in Bowling Green in 2005 and currently employs 368 Kentuckians. The company invested in five previous expansions totaling $236 million. KAAP is part of the Kobe Steel Group, known internationally as KOBELCO. KAAP develops lightweight aluminum parts contributing to the overall reduction in vehicle weight, which helps to lower fuel consumption and emissions.

“We are very excited about the opportunity to grow our business and provide new careers to many south-central Kentucky residents,” said Chris Boggs, General Affairs and Human Resources Manager for KAAP. “We look forward to adding new members to the KAAP family, and we are proud of the impact this will have on our state, city and community.”

“Kobe Aluminum Automotive Products has enjoyed great success since locating in the Commonwealth in 2005,” Governor Steve Beshear said. “This expansion will help the company continue to work hand-in-hand with the changing auto industry and its emphasis on using aluminum.”

As an incentive to encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives up to $2.7 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.

Additionally, KAAP was approved by KEDFA for $300,000 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 equipment.

KAAP also is eligible to receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies are eligible to receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.


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