Kowas first operation in North America
Knox County - Further proving Kentucky is a great place for foreign investment, Gov. Steve Beshear today joined company officials and local leaders to announce Kowa Kentucky Inc. plans to open a facility in Knox County.
For Kowa, which specializes in metalworking and treatment, the southeastern Kentucky location will be the companys first operation in North America. Kowa plans to create 30 jobs and invest $8.3 million into the project.
Kowa plans to move into the Corbin Regional Speculative building in the Southeast Kentucky Business Park this fall. The new facility will focus on surface treatment for automotive suppliers, specifically a highly advanced process known as electroless nickel plating.
Kowa is a leading provider of hot dip galvanized coating, various surface treatments of metal and metalworking. Its parent company, Kowa Kogyosho Company Ltd., is based in Nagoya, Japan.
We are excited about opening our first North American facility in Corbin and look forward to a long-lasting partnership with the Commonwealth of Kentucky, said Toshio Muguruma, president of Kowa Kogyosho Co. Ltd.
With our state-of-the art plating technologies, we hope to be able to expand our customer base in North America in coming years, said Saetsu Sato, president of Kowa Kentucky, Inc.
Kentucky has been extremely successful in the attraction of foreign direct investment. The Commonwealth is home to nearly 450 foreign-owned companies. More than 160 of those businesses are Japanese-owned, and they employ 43,000 people statewide.
Kentucky continues to set the bar for its growing automotive and automotive components manufacturing industry, including growing the number of research companies locating to the Commonwealth, said Rep. Jim Stewart, of Flat Lick. Im pleased Kowa chose Knox County for its first facility in North America, and Im happy to know that our people will be involved in discovering new ways to help automakers build a better vehicle.
To encourage the investment and job growth in Corbin, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives of up to $600,000 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.