Butler County’s Corvac Composites plans for expansion

Published 8:00 am Tuesday, June 5, 2018

Continuing the steady growth it has experienced since moving to Butler County 13 years ago, Michigan-based automobile parts-maker Corvac Composites is expanding its local operations again.

Corvac, which makes automotive underbody systems, was approved last week for state tax incentives that will allow the company to invest $6 million in new equipment right away and add about 30 jobs over the next five years.

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The company built a second building near Morgantown in 2010 and is now up to 180 employees. John Huber, Corvac’s vice president of manufacturing, said the latest expansion will not add any square footage to the plant but will allow the company to expand its product line.

“It’s just more equipment for now,” Huber said. “Over time we’ll add employees.”

Huber said Corvac currently makes parts for some Toyota and Honda models. The new equipment will allow the company to make parts for the Toyota Sienna and Highlander that are assembled in Indiana.

“The programs we’ll be awarded will start production in 2019 and 2020,” Huber said. “We’ll add employees as we get closer to the start of production.”

Corvac, which also has locations in Michigan, Texas and Ohio, opted to bring the new production to Butler County instead of Ohio.

“We weighed the options between the two locations,” Huber said. “We have invested in both states over the years. We have a good core of employees here, including many who have been with us since the beginning. We were happy to bring the new processes to Kentucky.”

Bowling Green Area Chamber of Commerce President and CEO Ron Bunch said Corvac has capitalized on the trend toward lighter materials in automotive manufacturing.

“Their products are in high demand throughout the automotive industry and will continue to be with lightweighting and noise reduction being of top priority for manufacturers and suppliers across the world,” Bunch said. “We look forward to their future growth in Morgantown.”

Corvac’s decision to expand in Butler County was aided by tax incentives of up to $600,000 that were approved last week by the Kentucky Economic Development Finance Authority. The performance-based incentive allows a company to keep a portion of its investment through corporate income tax credits and wage assessments by meeting job and investment targets.

– Follow business reporter Don Sergent on Twitter @BGDNbusiness or visit bgdailynews.com.