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Area Development - Site Selection, Facility Planning and Workforce Development

Mexico-Based Nemak Expands Glasgow, Kentucky, Operations

11/12/2021
To support future electric vehicle-related business, Nemak USA Inc., a Mexico-based manufacturer of innovative lightweight products for powertrain, e-mobility and structure applications, will expand its operations in Glasgow, Kentucky. The $27 million project is expected to create 170 jobs in Barren County.

The investment will support building upgrades and new, state-of-the-art equipment and will also increase the company’s training efforts for current and new employees in partnership with Southcentral Kentucky Community and Technical College and Western Kentucky University. Company leaders expect production of new parts to begin early next year, with full production slated for Q3 2022.

“Nemak is rapidly increasing our EV-related programs in order to support our customers in their mission for an all-electric future and a more sustainable mobility,” said Luis Peña, Nemak business unit director, USA. “Having the opportunity to expand our footprint at an existing plant aligns strongly with our commitment to our people and the communities in which we operate.”

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) last week preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $2.5 million in tax incentives based on the company’s investment of $27 million and annual targets of creation and maintenance of 170 Kentucky-resident, full-time jobs across 10 years and paying an average hourly wage of $35 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. In addition, Nemak 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 growth of our automotive industry during this record-breaking year for economic investment has been remarkable, and we are seeing more companies increase their focus on EV-related products,” Governor Andy Beshear said. “Nemak’s expansion will not only add to that growth, but also create a significant number of high-wage jobs for residents in Barren County and the surrounding region. I applaud Nemak’s decision to expand and look forward to many more years of success for the company in the commonwealth.”

Established in Mexico in 1979, Nemak manufactures innovative lightweight products for powertrain, e-mobility and structure applications for the automotive industry. Nemak Kentucky supports other companies in the state, as 20% of its spending in 2020 went toward products sourced from suppliers in the commonwealth. In addition to its Kentucky presence, Nemak has U.S. locations in Alabama, Michigan, Tennessee and Wisconsin. The company employs over 22,000 people at 38 facilities in 15 countries.

“On behalf of the Barren County Economic Authority, I extend our congratulations to Nemak and their entire team,” added Maureen Carpenter, executive director of the Barren County Economic Authority. “This expansion will have a significant economic impact on the community bringing important capital investment and high-paying new job opportunities for our residents. We are excited to work with Nemak on this project.”

The company operates a second facility in Glasgow on American Avenue. Nemak has operated in Barren County since 2012.

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