Kobe to triple its capacity

Published 12:00 am Saturday, June 3, 2006

Despite pouring rain, Warren County and Bowling Green officials, regional automotive suppliers, and a state representative were among the 200 who gathered to celebrate Kobe Aluminum Automotive Parts at a ceremony Friday morning.

Friday marked a year of Kobe’s business in Bowling Green, and expansions are already in the works.

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The company is building a 6,300-ton forging press line, expected to be completed by October this year. The press will be ready for mass production by next February. When it goes into operation, KAAP’s production capacity will triple in comparison to when it first started.

The company broke ground on its plant in 2003, but mass production began in June 2005.

A heat treatment furnace will also be constructed this year, along with other production lines, for a total of $65 million in expansions.

Kobe Aluminum Automotive Parts builds lightweight aluminum suspension-forged arms for cars. It has 110 employees at its 131,000-square-foot facility off Nashville Road, which sits on 33 acres.

Mass production for both Honda of Canada and Honda of Alabama plants starts this summer.

The company will supply aluminum forged parts for the Pilot SUV and Odyssey minivan, said Carol Maedel, quality engineer for KAAP.

Representatives of Honda Automotive were present to go on tours of KAAP facilities.

&#8220Kobe is one of the more modern plants in the U.S. right now, with its robotics and processing,” said Ashley Nichols, materials engineer for Honda’s Research and Development Americas Inc.

Kenton Powell, who works for Mathers Medals in Franklin, went on a tour of the KAAP plant.

&#8220For a lot of people in this area, (the Japanese companies are) the first introduction to automotive manufacturing,” Powell said.

Powell also said the region’s strong utility services and Kentucky’s central location to larger plants makes it an attractive place for new development.

&#8220We’re just happy to be in a growing market,” he said.

&#8220Bowling Green and Warren County is happy to be the home of many Japanese companies,” county Judge-Executive Michael Buchanon said.

Bowling Green City Commissioner Brian &#8220Slim” Nash presented a key to the city to KAAP President and CEO Takumi Fujii.

&#8220Today is a good day for Bowling Green and a good day for Kobe,” Nash said. &#8220Bowling Green has a lot to offer. Warren County has a lot to offer. We provide an outstanding quality of life to the people who choose to live here.”

Nash mentioned he enjoyed seeing the merger of Japanese and American cultures with the company.

&#8220As a sociologist, it is neat to watch,” he said.

Nash said the underlying reason was the unifying goal of success.

Jim Hizer, president of the Bowling Green Area Chamber of Commerce, made spiritual comments about the occasion.

&#8220The rain stopped right before the ceremony began.” Hizer said. &#8220I think that’s an good omen. That indicates God is blessing KAAP today. Our mission is the same as yours. We want nothing but your success and continued growth.”

Fujii later addressed how lightweight aluminum parts made by KAAP help consumers conserve fuel.

&#8220I hope our company will grow more year to year,” Fujii later said. &#8220The world is watching the plant not only because we help lower people’s fuel costs, but because our plant is environmentally friendly, reducing carbon dioxide emissions.”

Fujii sees more growth and demand for the company’s products in the future.

&#8220We are intensely trying to decrease the weight of American vehicles,” Fujii said. &#8220The technology we use can be used more and more, which increases demand for KAAP products.”

Fujii also said he would like to see the plant expand and produce more, but it’s more important to generate more jobs for the community and improve the way of life for its Bowling Green employees.

Parent company Kobe Steel Ltd. is the top producer of aluminum suspension forgings in Japan. Kobe Steel estimates it has an 80 percent share of the market.

Kobe Aluminum Automotive Products LLC is a joint venture 60 percent owned by Kobe Steel of Japan. Mitsui and Co. Ltd. has a 25 percent share and Toyota Tsusho Corp. has 15 percent.