Central KY’s newest manufacturing facility opens, bringing more than 200 jobs
A new facility promising Frankfort hundreds of full-time manufacturing jobs is open after local officials and leaders from the company cut a ceremonial ribbon Monday.
Nitto Inc., which also has a presence in Lexington, has opened a new high-performance materials production facility. It’s a project expected to create 220 new, full-time jobs, the largest work commitment in the Franklin County community since 2010, officials said.
“This significant investment reflects both Frankfort’s continued momentum and Nitto’s deep commitment to excellence, innovation and community,” said Frankfort Mayor Layne Wilkerson in the release. “We are proud to welcome a global partner who shares our values of respect, responsibility and long-term vision.”
The company manufactures a range of products, particularly those used in high-tech industries such as electronics, automotive and aerospace. The new facility in Franklin County’s Industrial Park 3 will give Nitto enough production space to continue delivering products to existing and new customers, including some of the state’s largest economic development projects in the electric vehicle battery production sector.
“Today marks a proud and exciting milestone for Nitto as we officially open the doors to our new Frankfort facility,” said Nitto Inc. President Shingo Suita in a news release following the ribbon cutting. “This expansion reflects our continued growth, commitment to innovation and dedication serving our customers and community with excellence. We want to thank the local Kentucky community for their warm welcome to the area along with our incredible team, our partners and everyone who helped bring this vision to life.”
Nitto’s history
Nitto operates two manufacturing facilities and a sales administration and distribution center in Lexington on Danforth Drive off Georgetown Road. The publicly-traded Japanese company has its Americas headquarters in New Jersey and operates in a handful of other states including Illinois and Ohio, according to its website. The company also has a presence in Mexico, Brazil, much of Europe, China and several countries in Southeast Asia. It employs approximately 30,000 across the world.
“The versatility of Kentucky’s economy is one of our state’s greatest strengths, and the continued growth of our manufacturing, automotive and aerospace sectors is key to our historic economic momentum,” Gov. Andy Beshear said in the release.
Nitto was founded in Japan in 1918 to produce electrical insulation materials and has grown since into a notable producer of pressure-sensitive adhesive and other materials used in broad markets. The company incorporated in the U.S. in 1968 and established its Kentucky presence in 1997 where it’s primarily supported the automotive industry and Japanese companies that supply parts to other companies.
Franklin County Judge Executive Michael Mueller said the company’s expansion is the largest commitment of jobs in the community in about 15 years. He said the announcement was a moment of significance and he was “honored by Nitto’s confidence in our region.”
Traded on the Tokyo Stock Exchange
Traded on the Tokyo Stock Exchange, the company said in its most recent quarterly financial results report for April, May and June that “although accelerated production activity was observed in automobiles, IT devices, and high-end smartphones prior to the implementation of additional U.S. tariffs, revenue and operating profit decreased (year-over-year).”
For the first quarter of the Japanese fiscal year, the company had a revenue of $1.66 billion and an operating profit of $286.8 million. Its revenue was down 1.3% compared to the same period last year and its operating profit was down almost 16%. That decline comes after the company had a previously strong fiscal year, its operating profit increasing by more than 33%.
Manufacturing Dive, a trade publication, reported in January Nitto was closing its facilities in Alabama and Virginia, laying off 56 and 86 employees, respectively. The company also cut 147 workers from its staff at a plant in Ohio at the beginning of the year.
On Monday afternoon, the company’s shares were trading up almost 20% year-to-date at $21.26.
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