FRANKFORT, KY (STL.News) During a virtual event today with Nova Steel USA Inc. executives and local leaders, Gov. Andy Beshear announced the steel processor plans to locate a tube manufacturing facility in Bowling Green, a $70 million investment that will help build a better Kentucky and is expected to create 110 full-time jobs in the coming years.
“Our state’s primary metals industry continues to thrive despite the challenging economic climate. This significant investment by Nova Steel promises to bring over 100 well-paying jobs for Kentucky families in and around Bowling Green,” Gov. Beshear said. “Team Kentucky is working to create a better future for all Kentuckians with quality job opportunities offering strong wages. Companies like Nova Steel are central to that effort, and we thank Nova Steel for its commitment to the commonwealth and our talented workforce.”
Company executives bought a 108,000-square-foot building in the Kentucky Transpark for their plant’s new home. The project includes purchase and installation of equipment for precision rollforming, laser cutting, tube bending and fabrication, along with robotics and other technology.
The new location – Nova Steel’s first in Kentucky – will represent an initial investment of over $20 million, creating 50 jobs. That portion is planned to open in summer 2021. Two additional expansions planned within the next three-to-five years would grow the operation to 325,000 square feet, bringing the total investment to $70 million and total jobs to 110. The new state-of-the-art facility will allow the company to better support customers throughout the South and Central U.S.
“We are very excited to be growing our company in the state of Kentucky and want to thank all those who have worked to help us reach this important milestone,” said Tom Stearns, corporate vice president of Nova Steel. “The new facility will produce a variety of automotive parts used in the production of pickup trucks and SUVs. We believe that Bowling Green is the ideal location to achieve our growth plans and look forward to a long and successful relationship with the community.”
Founded in Montreal, Canada, in 1979, Nova Steel has grown to include 20 locations throughout North America, including one facility in Michigan and four general line service centers in the Northeastern U.S. operating as American Steel & Aluminum. The company manufactures products for automotive, construction, mining, agriculture, transportation and other related industries.
Nova Steel joins Kentucky’s primary metals industry, which includes more than 220 facilities employing over 25,000 people. The industry consists of producers and downstream processors of steel, stainless steel, iron, aluminum, copper and brass.
Nova Steel also ranks as the 35th Canadian-owned facility operating in Kentucky, a group representing industries as diverse as pet food manufacturing, professional engineering, barbecue grill manufacturing and health care tech development. Canada is Kentucky’s fourth-largest international investor alongside Japan, Germany and France, respectively.
In total, Kentucky is home to more than 500 internationally owned facilities representing 32 nations. In total, foreign-owned manufacturing, service and tech companies employ over 112,000 people in Kentucky, making the state No. 1 in international employment.
Bowling Green Mayor Bruce Wilkerson said the company has the community’s full support.
“We welcome Nova Steel to the Bowling Green community,” Mayor Wilkerson said. “The city and our workforce are ready to support them and to help their company through the expansion process.”
Warren County Judge/Executive Mike Buchanon noted the continued economic growth in the region.
“Bowling Green is known for being an excellent location for manufacturing and distribution companies,” Judge/Executive Buchanon said. “We are continuing to see more and more national and international corporations choose our community for their growth needs. Our goal is to continue to support companies like Nova Steel to ensure their long-term success.”
Ron Bunch, president and CEO of the Bowling Green Area Chamber of Commerce, said the project will create significant growth in the years ahead.
“This level of investment and job creation is significant in Bowling Green and will add to our growing manufacturing sector,” Bunch said. “In addition to our excitement relating to the Nova project, we are deeply appreciative to the leadership at Bowling Green Metalforming who supported them locating in our community.”
John Bradley, senior vice president of economic development at the Tennessee Valley Authority (TVA), said the organization is happy to support the project.
“TVA and Warren Rural Electric Cooperative Corp. congratulate Nova Steel USA on its decision to locate and create new job opportunities in Bowling Green,” Bradley said. “Helping to foster job creation and investment is fundamental to TVA’s core mission of service and we are proud to partner with the Kentucky Cabinet for Economic Development and the Bowling Green Area Chamber of Commerce to further that mission.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) today 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 million in tax incentives based on the company’s investment of $70 million and annual targets of:
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.
Additionally, KEDFA approved Nova for up to $550,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.
In addition, Nova Steel can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.
For more information on Nova Steel, visit NovaSteel.ca/en.