News

Koyo, Nakatetsu, and Denso boost Japanese presence in Tennessee

December 15, 2006 — Three Japanese companies have initiated new manufacturing projects in Tennessee, boosting the already considerable Japanese presence in the state. Tennessee ranks second in the nation in investment by the Asian economic giant.

Koyo Corporation USA has broken ground on its third bearing-manufacturing plant in the U.S. In addition, Koyo will partner with Nakatetsu Inc. in a joint venture, Nakatetsu Machining Technologies, to build a manufacturing facility. Both plants will be located in the Washington County Industrial Park in northeast Tennessee. Combined, the companies plan to invest a total of $38 million and expect to create approximately 150 jobs for the region. Both companies are involved in manufacturing bearings for the automotive industry.

"Tennessee's growing partnership with Japanese firms like Koyo and Nakatetsu has been both beneficial and successful for all involved," said Matthew Kisber, Commissioner of the Tennessee Department of Economic and Community Development. "This new investment in Washington County will not only create jobs in the community, but adds to the long list of successes helping to underscore Tennessee's reputation as the home for the world's growing automotive industry."

An early Japanese arrival was Denso Manufacturing Tennessee Inc., which has been an economic contributor to the state for some 20 years. Denso has broken ground on a $185 million expansion at its Maryville, Tennessee, plant. The project will include a 210,000-square-foot building housing the latest technology in advanced automotive components and will create up to 500 new jobs. Denso currently employs about 3,500 Tennesseans at its plants in Maryville and Athens.

Of the $12 billion in Japanese capital investment in the state, Denso's share represents $850 million. The state has 168 Japanese companies that employ more than 42,000 people.