State, local, and company officials cut the ribbon Wednesday for Asahi Bluegrass Forge's new 70,000-square-foot manufacturing facility in Richmond. The state says the new plant, located at 3007 Bill Robertson Way, represents a $20.3 million investment in the Commonwealth and is expected to create 50 full-time jobs.
Kentucky is currently home to more than 440 automotive-related industries that employ more than 68,000 people. Additionally, Kentucky ranks third highest in auto industry-related employment as a percent of total state employment among the top motor vehicle producing states in the U.S.
Asahi Bluegrass Forge’s parent company is Asahi Forge Corporation, a Japanese company that specializes in producing such automotive parts as hub units, gears, transmission components, bearings and joints.
To encourage the investment and job growth in Richmond, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives up to $1 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.
KEDFA also approved Asahi Bluegrass Forge for tax benefits up to $120,000 through the Kentucky Enterprise Initiative Act, which allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing equipment.
“We are honored that Asahi Forge made the decision to build a second manufacturing plant in Richmond,” said Richmond Mayor Jim Barnes. “Asahi has been a valuable member of our industrial community since 2003. We have always had an excellent working relationship with Asahi and look forward to continuing that relationship. We are grateful to them for employing our citizens. I hereby pledge that the city of Richmond will support and assist them in every way possible to assure their success.”