BOWLING GREEN, Ky. — A steel processing company announced its plans to locate a tube manufacturing facility in Bowling Green, generating 110 full-time jobs over the coming years.

Nova Steel USA Inc. is making the $70 million investment, the company's first location in the Commonwealth.

“Our state’s primary metals industry continues to thrive despite the challenging economic climate. This significant investment by Nova Steel promises to bring over 100 well-paying jobs for Kentucky families in and around Bowling Green,” Gov. Andy Beshear said. “Team Kentucky is working to create a better future for all Kentuckians with quality job opportunities offering strong wages. Companies like Nova Steel are central to that effort, and we thank Nova Steel for its commitment to the commonwealth and our talented workforce.”

Nova Steel's new home will be a 108,000 square-foot building in the Kentucky Transpark. The project also includes the purchase and installation of equipment for precision rollforming, laser cutting, tube bending, and fabrication, along with robotics and other technology.

An initial investment of over $20 million will create 50 jobs, set to open in summer 2021. Following that are two additional expansions planned within the next three-to-five years, growing the operation to 325,000 square-feet and bringing the total investment to $70 million and total jobs to 110. 

“We are very excited to be growing our company in the state of Kentucky and want to thank all those who have worked to help us reach this important milestone,” said Tom Stearns, corporate vice president of Nova Steel. “The new facility will produce a variety of automotive parts used in the production of pickup trucks and SUVs. We believe that Bowling Green is the ideal location to achieve our growth plans and look forward to a long and successful relationship with the community.”

A Canadian company founded in 1979, Nova Steel has 20 locations in North America, such as a Michigan facility and four general line service centers in the Northeastern U.S. operating as American Steel & Aluminum. The steel processor manufactures products for automotive, construction, mining, agriculture, transportation, and other sectors.

Kentucky's primary metals industry already includes more than 220 facilities that employ over 25,000 people, consisting of producers and downstream processors of steel, stainless steel, iron, aluminum, copper, and brass.

Bowling Green Mayor Bruce Wilkerson welcomed the company.

“We welcome Nova Steel to the Bowling Green community,” Wilkerson said. “The city and our workforce are ready to support them and to help their company through the expansion process.”

The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved a 10-year incentive agreement with Nova Steel under the Kentucky Business Investment program. The agreement can provide up to $2 million in taxed incentives based on the company's investment of $70 million and annual targets which include:

• Creating and maintaining 110 Kentucky-resident, full-time jobs over 10 years; and
• Paying an average hourly wage of $31 with benefits.

The company can be eligible to keep a portion of the new tax revenue it generates by meeting the annual targets. The company may claim eligible incentives against its income tax liability and/or wage assessments.

KEDFA also approved Nova Steel for up to $550,000 in 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.

Nova Steel can also receive resources from the Kentucky Skills Network which allows companies to receive no-cost recruitment and job placement services, reduced-cost customized training, and job training incentives.