Cabinet for Economic Development
Governor Beshear Announces NHK of America Suspension Components to Make Significant Investment in Bowling Green
Company to invest more than $10 million to upgrade equipment, retain 206 jobs
FRANKFORT, Ky. (Aug. 2, 2010) – Gov. Steve Beshear and Cabinet for Economic Development Secretary Larry Hayes today announced NHK of America Suspension Components (NASCO) will make a more than $10 million investment in its Bowling Green plant, allowing the company to upgrade its equipment and maintain its existing 206 employees.
“NASCO’s decision to make additional investments in its Bowling Green facility is a strong indication of its confidence in the Bowling Green community and its existing workforce,” said Gov. Beshear. “Kentucky is proud to assist in making this project possible and looks forward to a long and successful partnership.”
Established in 1986, NASCO manufactures suspension coil springs and truck lid torsion bars. The company sells its products, along with stabilizer bars, to various automotive manufacturers in North America. NASCO currently manufactures about 10 million coil springs per year on five production lines and about two million trunk lid torsion bars.
Due to recent industry trends toward sophisticated spring designs requiring new technologies, a $10 million investment in equipment upgrades is necessary for NASCO to remain competitive, maintain output and retain its employment levels.
“The demand for suspension coil springs in the automotive industry is shifting toward highly engineered, complex shapes where our capabilities on our older lines are insufficient,” said Jeff Johnson, plant manager of NASCO. “This upgrade will allow us to maintain our current volume in this challenging market and build market share in the years to come.”
Beate Bachmann, controller for NASCO, added, “The KRA tax incentive is an important factor in transforming our plant. This incentive makes it easier to finance the capital spending needed to remain competitive and build for the future. It’s an excellent program for keeping jobs in Kentucky.”
The Kentucky Economic Development Finance Authority preliminarily approved NASCO for tax incentives up to $2.5 million through the Kentucky Reinvestment Act, a program that was expanded in the Governor’s Incentives for a New Kentucky bill last summer to assist companies that need to make significant capital investment in Kentucky facilities in order to remain competitive.
“Congratulations to NASCO on their new expansion, and our thanks to them for their newest investment in our community,” said Warren County Judge Executive Michael Buchanon. “We appreciate their continued commitment to the people of South Central Kentucky, and the additional job opportunities they are extending to the hardworking folks of this area.”
“We congratulate NASCO on this announcement and thank the company for continuing to invest in Bowling Green and South Central Kentucky. We look forward to watching NASCO grow,” said Bowling Green Mayor Elaine Walker.
A detailed community profile for Bowling Green (Warren County) can be viewed at http://thinkkentucky.com/EDIS/cmnty/index.aspx?cw=067. Information on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com.