Millions in tax incentives for area projects get OK

Warren County is in line for a new aluminum extrusion company following preliminary approval Thursday of incentives for the company.

Kentucky Economic Development Finance Authority preliminarily approved up to $2.7 million in incentives for Kobelco Aluminum Products & Extrusions Inc.

The company, owned by Kobe Steel, one of the parents to Kobe Aluminum Automotive Products in Bowling Green, proposes to make a $46.7 million investment – $13.7 million for construction of the building, with the remainder for equipment and other costs. Bowling Green city government is expected to participate in the incentives package.

The project has a target of employing 105 workers with an average hourly wage, including benefits, of $28, according to documents filed with KEDFA.

Kobe in 2015 marked its 10th year of operations in Warren County. The plant in the South Central Kentucky Industrial Park makes aluminum suspension products for the automotive industry. It has expanded multiple times, both physically and in its workforce.

If completed, Kobelco’s facility would fill the South Central Kentucky Industrial Park, which includes other such companies as Sun Products, RC Components, a distribution facility for Reinhart Foodservice and others.

Sumitomo Electric Wiring Systems, which once employed more than 2,000 people in southcentral Kentucky but had dwindled to the hundreds, is looking to expand again.

The company would like to expand into Simpson County with a proposed investment of more than $10 million in a speculative building already constructed in Henderson Industrial Park. The company that makes electric wiring harnesses and wiring for the automobile industry would hire up to 145 employees within three years, 82 of whom would be hired in the first year of operation. Wages are estimated at an average of $28 an hour, including benefits.

Sumitomo qualified for up to $1.369 million in incentives.

Simpson County is in line for another company: Butts Foods Inc. The family-owned business is headquartered in Jackson, Tenn., and is looking to expand to meet demand for fresh protein. A new Franklin facility would be for a distribution center to serve middle and east Tennessee, Kentucky and the Midwest.

Butts, with a proposed investment of up to $3.55 million, preliminarily qualified for up to $400,000 in incentives. It proposes hiring up to 30 people, starting with 20, with proposed average hourly wages, including benefits, of $29 an hour.

Scottsville’s Halton Co., which produces industrial ventilation systems, proposes to add office space and new machinery at a cost of $2.95 million. The company would qualify for a sales tax rebate of $75,000.

— Follow city editor Robyn L. Minor on Twitter at @bowserminor or visit bgdailynews.com.

— Follow city government reporter Wes Swietek on Twitter @BGDNgovtbeat or visit bgdailynews.com.