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Area Development - Site Selection, Facility Planning and Workforce Development

Japan-Based Sumitomo Electric Wiring Systems Plans Manufacturing Center In Franklin, Kentucky

07/18/2016
Japan-based Sumitomo Electric Wiring Systems Inc. (SEWS), an automotive supplier, is investing nearly $10.5 million to establish a new production facility in Franklin, Kentucky. SEWS plans to create up to 145 new jobs over the next 10 years at its new Franklin location.

The company is currently renovating a more than 65,000 square-foot building on Garvin Drive. The decision to locate in Franklin comes in response to an increase in demand SEWS anticipates from its automotive-industry customers throughout the next several years, according to state economic development officials. Company leaders noted Franklin’s access to I-65, proximity to the SEWS Scottsville location and the region’s workforce as deciding factors in selecting the site.

“Investing in additional production capacity will accommodate for future growth and development, which will position us well for further advancement in the industry,” said Alan Bomar, Plant Manager at the Scottsville facility. “More importantly, the south central Kentucky region has a talented workforce, which has been key to our success thus far, and we’re pleased to be able to continue our growth here.”

“I am pleased Sumitomo Electric Wiring Systems will continue to grow its Kentucky presence,” Governor Matt Bevin said. “Sumitomo’s Franklin plant will be the fifth location in the Commonwealth and will work closely with the Scottsville facility less than 30 miles away. We welcome the newest SEWS addition and are grateful for their continued investment in the Bluegrass state.”

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in April preliminarily approved the company for tax incentives up to $1.36 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, KEDFA approved SEWS for up to $30,000 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. SEWS can also receive resources from the Kentucky Skills Network.

The Japan-based Sumitomo family of companies owns SEWS, a global supplier of automotive electrical systems. Sumitomo established SEWS in 1986 as a joint venture between Sumitomo Electric Industries and Sumitomo Wiring Systems. SEWS maintains its U.S. headquarters in Bowling Green and operates facilities in Edmonton, Lexington and Scottsville.

Last year, SEWS broke ground on a 440,000-square-foot plant on Remington Way in Lexington to consolidate its two existing Lexington operations. That $8.5 million project will create up to 10 new jobs and will double the company’s Lexington footprint. The company anticipates the location will better serve customers and provide ample space for future growth.

“The announcement of Sumitomo marks the first industry to locate in our Henderson Interstate Industrial Park,” Mayor Ronnie Clark said. “The company is making quite an investment in Franklin and will eventually employ over 100 people. This is great news for Franklin.”

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