Central Motor Wheel of America (CMWA) Inc.’s $111.9 million planned expansion in Paris, Kentucky, will create 145 full-time jobs, 60 more than initially anticipated, according to Governor Matt Bevin’s office.
“Kentucky’s automotive industry remains in high gear, and this expansion by Central Motor Wheel of America is the latest example of a thriving industry,” Gov. Bevin said in a release. “The Bourbon County community will benefit greatly from this substantial job creation as CMWA increases production to better serve customers. We are grateful for the company’s commitment to the commonwealth and for its significant impact within Kentucky’s automotive industry.”
CMWA’s investment in the planned expansion has more than doubled since it was announced in late 2015, initially as a $45.5 million project bringing 85 new jobs. The company plans to grow onto an additional 40 acres and add 270,000 square feet to the company’s 330,000 square-foot aluminum wheel manufacturing facility at 150 Wheat Drive in Paris.
The broadened project will increase CMWA’s production by 50%. The 145 new jobs – atop the operation’s current 550 employees – include production, maintenance and engineering. Work on the expansion will begin this month, and company executives expect production to begin in July 2021.
“This project will expand our production capacity to support our customers’ increased demand for aluminum wheels in North America." — CMWA Executive Vice President Jeff Birdsong
“We are extremely excited to get our expansion project underway,” said CMWA Executive Vice President Jeff Birdsong. “This project will expand our production capacity to support our customers’ increased demand for aluminum wheels in North America. Our new facility will be more streamlined and equipped with the latest technologies.”
Founded as Central Manufacturing Co. in 1986, CMWA is a joint venture between Central Motor Wheel Co. Ltd. and Toyota Tsusho Corp. The company began producing steel wheels in 1988 and manufactured its first aluminum wheels in 1990. Adopting its current name in 2007, the company produces aluminum wheels for Toyota and steel wheels for Toyota, Honda, Hyundai and Subaru. In addition to the Paris operation, Central Motor Wheel Co. Ltd. maintains 10 facilities in Japan, Mexico, China, Thailand, Taiwan and Indonesia.
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in October 2015 preliminarily approved the company for up to $1.75 million in performance-based incentives through the Kentucky Business Investment (KBI) program based on the original project’s scope. KEDFA may modify the agreement in the future to reflect the additional jobs and investment. KBI’s performance-based incentives allow companies to keep a portion of the new tax revenue they generate over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.
KEDFA in October 2015 also approved CMWA for up to $200,000 in performance-based 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.
For more information on CMWA, visit www.CMWA.com.