Japan-Based Riken Elastomers Corporation Invests $22 Million To Double Christian County, Kentucky, Manufacturing Plant
The Japanese-owned company plans to add more than 81,000 square feet to its 88,000-square-foot facility on Riken Court, as well as new production lines. The expansion, which will be completed mid-2016 and include creating 27 jobs, is needed to keep pace with growing demand.
“We are delighted to expand again here in Hopkinsville,” said company President Gakuyuki Kajiyama. “Hopkinsville is an ideal location for us, and with strong support from the state and city, we are able to continue to grow our business. We believe that Riken Elastomers Corporation has a strong future in Hopkinsville.”
Since 2007, Riken Elastomers manufactures high-performance plastic compounds primarily used in the automotive industry. Thermo Plastic Compounds are used in many applications. Compounds are mixtures of base resin with several different additives.
As an incentive to encourage the investment and job growth in Christian County, the Kentucky Economic Development Finance Authority preliminarily approved the company for tax incentives up to $675,000 through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.
KEDFA also approved the company for tax benefits up to $50,000 through the Kentucky Enterprise Initiative Act, which 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.
“This is a welcome investment in western Kentucky,” said Governor Steve Beshear. “The fact that Riken Elastomers plans such a significant expansion here is further testament to our skilled workforce and thriving auto industry. Riken has been a tremendous corporate partner to the Commonwealth, and we want to celebrate the company’s success and the new jobs being created.”
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