Glasgow’s Nemak plant announces expansion
Published 12:15 am Monday, November 8, 2021
A move to lighter, more fuel-efficient automobiles is having a heavyweight impact on one Glasgow manufacturer.
Nemak Kentucky, a subsidiary of Mexico-based Nemak, has announced a $27 million expansion of its Glasgow plant that is expected to create as many as 170 jobs at the company that makes lightweight automobile parts primarily out of aluminum.
The expansion will nearly double employment at the Glasgow Nemak plant, which now has about 200 employees, according to Kentucky Cabinet for Economic Development documents.
A news release from Gov. Andy Beshear’s office said Nemak’s investment will support building upgrades and new, state-of-the-art equipment at its facility on Prestwick Drive.
The expansion will support new electric vehicle-related business and better position the operation for future contracts.
It also will increase the company’s training efforts for current and new employees in partnership with Southcentral Kentucky Community and Technical College and Western Kentucky University.
Company leaders expect production of new parts to begin early next year, with full production slated for the third quarter of 2022.
Nemak, which was established in Mexico in 1979, has had a presence in Glasgow since 2012.
A supplier of parts for such automobile manufacturers as Ford, General Motors, Hyundai and Toyota, Nemak also has U.S. locations in Alabama, Michigan, Tennessee and Wisconsin. The company employs more than 22,000 people at 38 facilities in 15 countries, generating revenues of $3.2 billion in 2020.
The company is looking to boost those revenues by latching on to a movement toward de-carbonizing the automobile industry.
President Joe Biden’s goal of making half of all new vehicles sold in 2030 electric is expected to spark growth for companies like Nemak that make the lightweight materials needed for EVs.
“Nemak is rapidly increasing our EV-related programs in order to support our customers in their mission for an all-electric future and a more sustainable mobility,” Luis Peña, Nemak’s U.S. business unit director, said in a news release. “Having the opportunity to expand our footprint at an existing plant aligns strongly with our commitment to our people and the communities in which we operate.”
Maureen Carpenter, executive director of the Barren County Economic Authority, said Nemak’s expansion will have a “significant economic impact” that will create “high-paying new job opportunities.”
Kentucky Economic Development Finance Authority documents said Nemak will be creating jobs with pay and benefits totaling $35 an hour.
KEDFA last week preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $2.5 million in tax incentives based on Nemak meeting its investment and employment targets.