Toyota Boshoku America Inc. To Expand Operations With $225 Million Investment in Hopkinsville, Creating 157 Full-Time Jobs
New facility will be company?s first ?Smart Plant,? using innovative technology to maximize manufacturing efficiency
FRANKFORT, Ky. (March 30, 2023) ? Today, Gov. Andy Beshear highlighted continued momentum of the state?s manufacturing industry as Toyota Boshoku America Inc. (TBA) will invest more than $225 million to construct a new facility in Hopkinsville and create 157 quality jobs for Kentuckians.
?Kentucky?s manufacturing industry has seen incredible growth and momentum recently, and that isn?t stopping anytime soon,? said Gov. Beshear. ?We continue to see quality companies choose the commonwealth to expand their business and invest in our communities, and that speaks to our resources and talented workforce. Toyota Boshoku has played a major role in our state?s manufacturing sector for years, and I am thrilled to see them add another facility here in Kentucky. I want to thank the company?s leadership for continuing to believe in the commonwealth and look forward to the success of their newest plant.?
The new facility will include a 365,400-square-foot building pad on 49 acres in Christian County. The plant will be the first TBA location globally to be considered a ?Smart Plant.? The facility will employ innovative, cutting-edge technologies such as advanced robotics, planning and automation to streamline processes, reduce waste and enhance productivity to maximize efficiency and operations. By implementing these technologies, the company will create a more efficient and environmentally responsible operation that will serve as a model for others to follow. The new facility will be the company?s fifth location in the commonwealth. Construction is expected to begin in June of this year and be completed in August 2024.
?Our company?s history in Kentucky started 35 years ago,? said Hidenori Ozaki, president and CEO at TBA. ?Since that time, we have grown our presence in the state, including bringing our America?s region corporate headquarters to Erlanger 15 years ago. We believe Christian County and the city of Hopkinsville are the ideal location for our next Kentucky site. We appreciate the Commonwealth of Kentucky, Christian County and Hopkinsville for their ongoing support of manufacturing in the state. We are excited to continue strengthening our relationship with the Commonwealth of Kentucky through the launch of this new facility.?
Toyota Boshoku Corp., one of the world?s premium interior systems suppliers and filter manufacturers, develops and produces interior, filtration and powertrain components.? With its global headquarters in Kariya City, Japan, Toyota Boshoku is the parent company of TBA, which is based in Erlanger, Kentucky. TBA and its affiliates employ over 12,000 team members in 22 locations throughout the United States, Canada, Mexico, Brazil and Argentina. The company is a premier manufacturer of automotive interior systems, which include seat, door trim, headliner, substrate and carpet in addition to air and oil filters for a variety of customers such as Toyota, BMW and Subaru. In Kentucky, the company currently operates three full production plants, located in Bardstown, Harrodsburg and Lebanon. With the completion of this plant, TBA will employ over 1,100 Kentuckians across five locations throughout the commonwealth.
This expansion adds to Kentucky?s thriving manufacturing sector, which includes more than 5,000 facilities and employs over 250,000 people statewide. Administration-to-date, more than 570 new location and expansion projects from manufacturers are expected to create nearly 28,000 full-time jobs with over $21 billion in new investments.
Christian County Judge/Executive Jerry Gilliam thanked company leadership for their decision to locate and invest in the community and surrounding region.
?On behalf of Christian County Fiscal Court and the residents of Christian County, I offer my heartfelt appreciation to Toyoda Boshoku?s leadership for this sizeable investment in our community and region,? said Judge Gilliam. ?We recognize that an international company, like Toyoda Boshoku, ran an extensive process and considered several locations. We are confident they?ll enjoy success with our strong workforce, outstanding quality of life, and affordable cost of business.?
Hopkinsville Mayor James Knight welcomes the company to the community and looks forward to their partnership with Hopkinsville.
?Hopkinsville is honored to celebrate a significant industrial announcement and foreign direct investment as Toyoda Boshoku plans a $225 million capital investment creating over 157 awesome jobs,? said Mayor Knight. ?We are thrilled they found the perfect location in Hopkinsville?s South Park and are becoming a part of our corporate family in Southwestern Kentucky!?
Carter Hendricks, executive director of the South Western Kentucky Economic Development Council, thanked local and state officials for helping to bring this project to Hopkinsville.
?We are excited Toyoda Boshoku has chosen Hopkinsville?s South Park for their new smart facility investment creating over 157 great jobs and a sizeable capital investment,? said Hendricks. ?We thank Gov. Andy Beshear, Cabinet for Economic Development Secretary Jeff Noel, TVA, and our local and regional partners for supporting this incredible project. We look forward to supporting their growth for decades to come.?
John Bradley, Tennessee Valley Authority?s senior vice president of economic development, congratulated the company on their new facility and future success in the region.
?TVA and Pennyrile RECC congratulate Toyota Boshoku America Inc. on its decision to establish operations in Hopkinsville,? said Bradley. ?We are proud to partner with the City of Hopkinsville, Christian County and the Kentucky Cabinet for Economic Development to support companies like Toyota Boshoku America and look forward to its future business success in the region.?
TBA?s investment and planned job creation furthers recent economic momentum in the commonwealth, as the state builds back stronger from the effects of the pandemic.
Since the beginning of his administration, Gov. Beshear has announced the creation of 44,500 full-time jobs and more than 840 private-sector new-location and expansion projects totaling $25.6 billion in announced investments.
The Governor has now secured the best two-year period in state history for economic growth.
In 2021, the commonwealth shattered every economic development record in the books. Private-sector new-location and expansion announcements included a record $11.2 billion in total planned investment and commitments to create a record 18,000-plus full-time jobs across the coming years.
That momentum continued strongly into 2022 with 248 new-location and expansion announcements totaling 16,000 full-time jobs behind nearly $10.5 billion in new investment.
The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 was $26.78 before benefits, the second-highest mark since 2010 and an 11.5% increase over the previous year.
Gov. Beshear also announced the two largest economic development projects in state history. In September 2021, Gov. Beshear and leaders from Ford Motor Co. and SK Innovation celebrated a transformative $5.8 billion investment that will create 5,000 jobs in Hardin County. And in April 2022, the Governor was joined by leadership at Envision AESC to announce a $2 billion investment that will create 2,000 jobs in Warren County. These announcements solidify Kentucky as the EV battery production capital of the United States.
Kentucky?s success has been noted by both S&P Global Ratings and Fitch Ratings, which have upgraded the state?s financial outlook to positive in recognition of the commonwealth?s surging economy.
Site Selection magazine placed Kentucky second nationwide and first in the South Central region for its annual Governor?s Cup ranking for 2022, which recognizes state-level economic success based on capital investments.
Gov. Beshear?s administration is projected to post the four highest years of budget surpluses in Kentucky history, and the state?s rainy-day fund has a record balance of $2.7 billion.
Recently, Gov. Beshear announced a new ?Supply Kentucky? initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.
The Governor also announced that Kentucky set the lowest annual unemployment rate in state history for 2022 at 3.9%. This is the lowest rate seen since the U.S. Bureau of Labor Statistics began reporting state unemployment rates in 1976.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $6 million in tax incentives based on the company?s investment of over $225 million and annual targets of:
- Creation and maintenance of 157 Kentucky-resident, full-time jobs across 15 years; and
- Paying an average hourly wage of $40 including benefits across those jobs.
Additionally, KEDFA approved TBA for up to $500,000 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.
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, TBA 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.
For more information on TBA, visit toyota-boshoku.com/us.
A detailed community profile for Christian County can be viewed here. ?
Information on Kentucky?s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.
Read about other key updates, actions and information from Gov. Beshear and his administration at?governor.ky.gov,?kycovid19.ky.gov?and the Governor?s official social media accounts?Facebook,?Twitter?and?YouTube.
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