New aluminum production capacity announced in Kentucky

The automotive aluminum subsidiary of Japan’s Kobe Steel Ltd. will build an aluminum extrusion and fabrication facility next to an existing forging plant in Bowling Green, Kentucky. According to a news release issued by Kentucky Gov. Matt Bevin’s office, the $46.7 million investment will create 105 jobs.

Kobe’s new facility will be called Kobelco Aluminum Products & Extrusions Inc. (KPEX) and will be sited near its existing Kobe Aluminum Automotive Products LLC (KAAP) plant. Construction will begin in June 2016 with product fabrication operations expected to start by December 2017. Kobe executives say they anticipate the plant’s melting, casting and extrusion areas will begin production by October 2018.

The new facility will help capitalize on the automotive industry’s demand for aluminum products, such as bumper beams, suspension components, body framework and other areas to lighten vehicles, says KAAP.

“We’ve been supplying aluminum bumper materials to Japanese automakers since the 1990s, and now KPEX will enable us to provide our customers here with the same quality products to meet their requirements for lightweight components,” says Executive Vice President Akira Kaneko, who heads the aluminum and copper business at Kobe Steel.

Founded in 1905 and headquartered in Kobe and Tokyo, Kobe Steel operates worldwide under the Kobelco brand. The company added aluminum and copper supply to its lineup in 1917. Through a number of corporate subsidiaries, Kobe offers a diverse range of products and services including material handling machines.

KAAP, the sister facility in Bowling Green, opened in 2005 and produces forged suspension components for cars and SUVs. The plant employs about 375 people. In the fall of 2015 Kobe announced a $57 million expansion—KAAP’s sixth—that will add 112 jobs, according to the governor’s office.

“Bowling Green’s aluminum industry is flourishing and Kobe recognizes the potential for success and growth for their company here. We are excited to have them join our 45 other metal fabrication companies in south central Kentucky,” remarks Bowling Green Mayor Bruce Wilkerson.