Nemak Kentucky to add 170 jobs with Glasgow expansion

Growth of aluminum automotive components supplier to support emerging EV market

FRANKFORT, Ky. (WTVQ) – Nemak USA Inc., a manufacturer of innovative lightweight products for powertrain, e-mobility and structure applications, will create 170 well-paying jobs with a $27 million expansion of its Nemak Kentucky operation in Glasgow to support future electric vehicle-related business.

“The growth of our automotive industry during this record-breaking year for economic investment has been remarkable, and we are seeing more companies increase their focus on EV-related products,” Gov. Andy Beshear said. “Nemak’s expansion will not only add to that growth, but also create a significant number of high-wage jobs for residents in Barren County and the surrounding region. I applaud Nemak’s decision to expand and look forward to many more years of success for the company in the commonwealth.”

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 EV-related business and better position the operation for future contracts. The project 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 in early next year, with full production slated for Q3 2022.

The company operates a second facility in Glasgow on American Avenue. Nemak has operated in Barren County since 2012.

“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,” said Luis Peña, Nemak business unit director, USA. “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.”

Established in Mexico in 1979, Nemak manufactures innovative lightweight products for powertrain, e-mobility and structure applications for the automotive industry. Nemak Kentucky supports other companies in the state, as 20% of its spending in 2020 went toward products sourced from suppliers in the commonwealth. In addition to its Kentucky presence, Nemak has U.S. locations in Alabama, Michigan, Tennessee and Wisconsin. The company employs over 22,000 people at 38 facilities in 15 countries.

Currently, more than 525 motor vehicle-related facilities operate in Kentucky, employing over 100,000 full time. In 2021, automotive companies have announced new-location and expansion projects creating 7,300-plus full-time jobs with over $7 billion in new investments.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (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 the company’s investment of $27 million and annual targets of:

  • Creation and maintenance of 170 Kentucky-resident, full-time jobs across 10 years; and
  • Paying an average hourly wage of $35 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, Nemak can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.