Japanese firm Kobelco Construction Machinery Co. announced plans to invest $41 million in Spartanburg County to complete a 156,000-square-foot excavator manufacturing facility and create 131 new jobs.
The S.C. Coordinating Council for Economic Development approved a $750,000 set-aside grant to assist with property improvement costs, as well as job development tax credits related to the project.
The facility – located in Moore, S.C. – is slated for completion in December and will ease the company’s reliance on the company’s Hiroshima Itsukaichi plant, which currently accounts for Kobelco’s entire sales volume. The new facility will also reduce lead time for customer orders and improve the firm’s response time to market needs, according to a news release.
Kobelco will use the port in Charleston to both import components and export finished goods, according to SC Ports Authority President and CEO Jim Newsome.
The Spartanburg facility will be incorporated into Kobelco’s North American subsidiary, Kobelco Construction Machinery U.S.A., headquartered in Katy, Texas.
“It’s always encouraging when foreign-based firms conclude that South Carolina is where they would like to do business,” said S.C. Secretary of Commerce Bobby Hitt in a news release. “Kobelco Construction Machinery’s decision to establish operations in Spartanburg County proves that the business-friendly environment we offer in the Palmetto State has gained an international reputation, and I look forward to supporting Kobelco as we strive to uphold that distinction.”
Kobelco Construction Machinery Co. is one of nine businesses under the Japan-based Kobe Steel Group, which employs close to 40,000 people worldwide. Kobelco manufactures, sells and services hydraulic excavators, mini excavators, wheel loaders and road construction equipment.
“Spartanburg’s own Pacolet Milliken, AFL Global, Neff Rental, and Spartanburg Community College all aided in making this announcement possible and we thank them for their continued support of our economic development efforts,” said David Britt, chairman of the Economic Recruitment and Development Committee of Spartanburg County and member of the Economic Futures Group Board. “The international recruitment efforts supported by the Economic Futures Group, Upstate SC Alliance, and the SC Department of Commerce are clearly paying dividends.”
Kobelco entered the U.S. market in 2013, and has concluded dealer agreements with 62 companies, 52 of which are based in North America.
