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Jeff Taylor
Jeff Taylor
Commissioner
Business Development

Kentucky Cabinet for Economic Development
800.626.2930
502.564.7670
Jeff.Taylor@ky.gov

Andy Beshear
Governor
Old Capitol Annex
300 West Broadway
Frankfort, KY 40601
Larry Hayes
Interim Secretary
2021-11-09 02:38:36
For Immediate Release
 
Jack Mazurak
502.782.1965


INOAC Group North America to Expand in Springfield, Create 49 Full-Time Jobs

$13.7 million investment will support new business with Ford’s Kentucky Truck Plant


FRANKFORT, Ky. (Nov. 9, 2021) – Today, Gov. Andy Beshear announced INOAC Group North America LLC, a manufacturer of plastic, rubber, polyurethane and composite products for automotive and other industries, will expand its operation in Washington County and create 49 well-paying, full-time jobs with a more than $13.7 million investment.

“We are experiencing tremendous economic growth throughout the commonwealth, and it is great to see INOAC add to that momentum with this expansion of its Springfield facility,” Gov. Beshear said. “The addition of nearly 50 well-paying jobs in Washington County is great news for the community and Kentucky’s rapidly growing automotive industry.”

The investment in new equipment and technology and building upgrades at INOAC’s facility on Industry Drive in Springfield comes in response to new business to supply products for Ford’s Kentucky Truck Plant in Louisville. The 49 new jobs created through the project will include production operators, team leaders and quality and material handling positions. Currently, INOAC employs more than 330 people at the Springfield plant. The project is scheduled for startup in the fall of 2022.

“INOAC is excited to continue our strong relationship with Ford and the Kentucky Truck Plant with this significant investment. This project will support our continued growth in this region, building on our longstanding relationship with Ford and the Springfield community,” said Roger Dawes, president of INOAC Group North America.

Opened in Springfield in 1990, INOAC Group North America manufactures thermoset, thermoplastic, elastomeric and emerging material products. The company produces interior products for automotive customers such as Ford, Toyota and Honda. Products include instrument panels, interior trim, armrests, headrests, noise, vibration and harshness (NVH) components and seat cushioning. INOAC also manufactures materials for the packaging, consumer products, medical, electrical, construction, industrial machinery and IT equipment markets.

The company is a subsidiary of Japan-based INOAC Corp., which operates throughout Asia and North America. Currently, nearly 200 Japanese-owned manufacturing, service and technology-related facilities operate in the commonwealth, employing approximately 47,000 Kentucky residents.

INOAC is among the nearly 5,000 manufacturing-related facilities in the state, which employ more than 250,000 people. Kentucky excels as a national leader in manufacturing, with about 13% of its workforce holding a job in the sector compared to the U.S. average of 8.5%.

Washington County Judge/Executive Tim Graves said INOAC’s continued success is vital for the community’s future.

“INOAC is a leading manufacturer in their field, and one of our largest employers. This project is just another testament to their commitment and importance to this community,” Judge/Executive Graves said. “We look forward to seeing this expansion take shape and are excited about INOAC’s future in Washington County.”

Springfield Mayor Debbie Wakefield welcomed the company’s growth and support of the local workforce.

“We are thrilled to see INOAC continue their growth and more than 20 years of investment in Springfield,” Mayor Wakefield said. “They are not only one of our top employers, but an excellent community partner!”

Daniel Carney, executive director of the Springfield-Washington County Economic Development Authority, noted the company’s diverse manufacturing presence.

“INOAC brings quality and expertise to everything they do, which is why they are a global leader across a variety of fields in manufacturing and innovation,” Carney said. “We are blessed that they not only call Springfield home, but that they continue to invest and grow in this community.”

INOAC’s investment and planned job creation furthers recent economic momentum in the commonwealth, as the state builds back stronger following the effects of the pandemic.

This year, the commonwealth has shattered every economic development record in the books for yearly investment totals. Year-to-date, private-sector new-location and expansion announcements include over $10 billion in total planned investment and commitments to create 15,200-plus full-time jobs across the coming years. Through September, Kentucky’s average incentivized hourly wage is $24.15 before benefits, a 10% increase over the previous year.

In September, Gov. Beshear, Ford Motor Co. Executive Chair Bill Ford, CEO Jim Farley and Dong-Seob Jee, president of SK Innovation’s battery business, announced the single largest economic development project in the history of the commonwealth, celebrating a transformative $5.8 billion investment that will create 5,000 jobs and places Kentucky at the forefront of the automotive industry’s future.

In July, thanks to strong fiscal management by the Beshear administration, the state budget office reported the commonwealth ended the 2021 fiscal year with a general fund surplus of over $1.1 billion – the highest ever in the commonwealth – and a 10.9% increase in general fund receipts to $12.8 billion.

In May, Moody’s Analytics published a positive economic outlook for Kentucky, noting mass vaccination as the driving force behind a sustained recovery in consumer services. The state’s recovery, Moody’s said, benefited from earlier reopening efforts and increased demand for manufactured goods over services. The report also found Kentucky’s manufacturing industry outperformed the nation’s since the national downturn last year.

Fitch Ratings in May improved the state’s financial outlook to stable, reflecting the commonwealth’s solid economic recovery. The state’s April sales tax receipts set an all-time monthly record at $486.5 million, as did vehicle usage tax receipts at over $64 million.

In March, Site Selection magazine’s annual Governor’s Cup rankings for 2020 positioned Kentucky atop the South Central region, and third nationally, for qualifying projects per capita. The commonwealth also placed seventh overall in total projects, the highest of any state with a population under 5 million. Site Selection also recently placed Kentucky in a tie for fifth in its 2021 Prosperity Cup rankings, positioning the state among the national leaders for business climate.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in October preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $550,000 in tax incentives based on the company’s investment of $13.7 million and annual targets of:

  • Creation and maintenance of 49 Kentucky-resident, full-time jobs across 10 years; and
  • Paying an average hourly wage of $25 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, INOAC 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.

For more information on INOAC, visit INOACUSA.com.

A detailed community profile for Washington County can be viewed here.

Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.

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