Washington County, Tennessee – November 19, 2010 – Koyo Corp. of USA, a Japanese company located in the Washington County Industrial Park, will immediately begin construction on a more than $30 million expansion of its manufacturing plant, company officials announced Thursday.
The 61,000-square-foot project should be completed by next summer, and by 2014, Koyo’s current work force of about 60 should near 125 employees, according to local officials.
The company, which produces taper roller bearings used in vehicle axle and transmission systems, chose its original 31-acre site in the Telford industrial park in 2006. Koyo officials cut the ribbon on that first $27 million project, an 80,000-square-foot manufacturing facility, in 2008. At that time, Koyo representatives said they left themselves plenty of room to expand, and went so far as to grade the surrounding land in preparation.
Of the upcoming $30 million project, $24 million will go toward equipment, with $6 million toward the building. About 10,000 to 15,000 square feet will be added to the northwest side of the existing building, with the remaining square footage going on the other end of the plant.
When the expansion is complete, the total facility will be in excess of 140,000 square feet with investments totaling more than $57 million, Koyo said in a press release.
Washington County Mayor Dan Eldridge said the expansion is a clear indication of Washington County’s potential.
“I hope this sends a message that Washington County is open for business, and it’s a great place to do business,” Eldridge said. “Anytime you’ve got an existing business that is willing to make a further investment and do further hiring is always a good sign. To me, that is a marketing opportunity in itself. As we approach prospects for this area, it’s always good to say we’ve got existing employers investing more, hiring people, and expanding business, because they like doing business here.”
Eldridge said the Washington County presence of Koyo, and its sister company and supplier, Nakatetsu, is in large part due to the work of his predecessor, former Mayor George Jaynes, and Economic Development Board Executive Director P.C. Snapp.
In fact, Snapp said on Thursday, he has been working behind the scenes facilitating the planned expansion since late summer.
“We had an idea they were going to do an expansion, and so we’ve been working with the state and with Koyo and with their builders, Forcum Lannom, since that time,” Snapp said. “They had hoped to start a little bit sooner than they did, but it’s something they had said they’d do when they came here three or four years ago.”
Both he and Eldridge called the announcement very good news for Washington County, particularly in the employment sector.
Eldridge noted that Koyo hires almost all of its employees locally, and in addition, provides good-paying production jobs. Current jobs at the plant consist primarily of machining, grinding, assembly, skilled trades and professional positions.
Snapp said he’s heard from several sources that the auto industry is beginning to make its turnaround, and Koyo’s move would support that idea.
“It seems like where the auto industry goes, so goes the country, or at least that used to be the norm,” Snapp said. “Hopefully that is the trend now, and that’s definitely good news for Washington County.”
According to Koyo Corp. of USA’s Vice President Steve McCullough, Koyo’s decision to expand is part of continued planned growth in the U.S. automotive market, despite economic times.
“2009 was a tough year for everyone but Koyo has positioned (itself) to take full advantage as the auto industry starts to rebound,” McCullough said in a press release. “Koyo’s Washington County Plant is an integral part of Koyo’s long term strategy and growth.”
For Eldridge, the industrial park’s success demonstrates even more the need for more county-owned land to show to prospective companies.
“The more I learn about economic development, the more I understand that to be successful in attracting business, you need to have shovel-ready sites,” Eldridge said. “It’s so important. These companies want to come in, make their investment and get their new facility up and running as soon as possible and start generating a return.”
Koyo, a wholly owned subsidiary of J-TEKT Corp., is a Tier 1 and Tier 2 supplier to Toyota, Honda, Ford, GM, Chrysler, and BMW. J-TEKT is headquartered in Japan with head offices in Nagoya and Osaka. Annual global sales are $10 billion and the company employs 30,000 worldwide. J-TEKT produces steering, driveline, bearings and machine tools. The Koyo plant is supplied with bearing parts by its sister company, Nakatetsu, located on an adjacent 21-acre site in the Washington County Industrial Park.
For more information on Koyo Corp. of USA, please visit www.koyousa.com.
