Sumitomo Electric Wiring Systems (SEWS) recently announced a $17 million expansion of its Bowling Green, Kentucky, facility that will create 76 new full-time jobs.
A subsidiary of Japanese conglomerate Sumitomo Electric Industries, SEWS will use the funds to increase its product lines, specifically electric wiring harness components for automobiles.
The company plans to add new injection-molding machines, along with automated assembly equipment, to produce electrical connectors for the automotive industry.
SEWS also hopes to establish warehousing facilities for both raw materials and finished goods. According to the company, the expansion will feature a clean, climate-controlled environment and will create new opportunities in manufacturing, warehousing, maintenance and engineering.
“Kentucky’s manufacturing industry has long been a key economic driver for this state, and the momentum we have seen within this sector in recent years shows no sign of slowing,” said Kentucky Governor Andy Beshear. Beshear added that SEWS has done business in Kentucky for 37 years.
“We have been producing connectors and terminals in Kentucky since 1988; it’s very exciting to be able to continue to grow and expand in South Central Kentucky,” said John Saylors, division manager of Sumitomo Electric Wiring Systems.
According to Saylors, SEWS has sought to expand in Kentucky for several years but was finally able to make it happen, thanks to cooperation from the Franklin-Simpson Industrial Authority and the state.
In June, the Kentucky Economic Development Finance Authority preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $850,000 in tax incentives based on the company’s investment of $17 million and annual targets for the creation and maintenance of 76 Kentucky-resident, full-time jobs over 10 years, as well as paying an average hourly wage of $31, including benefits, across those jobs.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, SEWS can receive resources from Kentucky’s workforce service providers, including no-cost recruitment and job placement services, as well as reduced-cost customized training and job-training incentives.
