Kobelco Aluminum Products & Extrusions Inc. which opened an extrusion plant for the automotive sector in Bowling Green, Kentucky in in February 2017 will expand the plant with a US$42 million investment, adding 90 new jobs and increasing overall Kentucky investment to US$95 million. Kentucky Governor Matt Bevin announced this yesterday.
“This major expansion by Kobelco underscores that Kentucky is the nation’s leader in both aluminium and automotive-related production,” Gov. Bevin said. He also reiterated their commitments to support the growth of existing employers like Kobelco.
{alcircleadd}
With the expansion, Kobelco would add a new melting furnace, extrusion press and fabrication equipment, the construction of which will start in January 2019 and production in the expanded operation is expected in H1 2020. The plant currently manufactures aluminium bumper and sub-frame materials.
“Kobelco Aluminum Products & Extrusions Inc. was established in April 2016 using our technology from Japan, and with the cooperation of Kentucky officials, our customers, and all the employees working at Kobelco, we were able to successfully begin mass production here in the US,” said Hiroaki Matsubara, Kobe Steel senior managing executive officer.
He added that the expansion will cater to the growing demand for lightweight aluminium auto parts in order to meet stricter fuel economy and emissions standards and further develop their business footprint in the Bowling Green facility.
KPEX is Kobe Steel's second manufacturing operation in Bowling Green after Kobe Aluminum Automotive Products, LLC (or KAAP), which began production in 2005. KAAP makes aluminium forgings for automotive suspension systems and aluminium cast rods for compressors.
Kentucky government is committed to support business growth in Bowling Green in order to allow the region to remain a leader in the automotive industry and the dignitaries present during the announcement welcomed Kobelco’s decision to expand its business in the region.
Kobelco currently has two performance-based incentive agreements from the Kentucky Economic Development Finance Authority, which are designed to encourage investment and job growth for the state.
Responses
