CHARLESTON, W.Va. — A Japanese auto parts manufacturer is making plans to expand its West Virginia operations.
Pocatalico-based NGK Spark Plugs received approval Thursday from the West Virginia Economic Development Authority to help finance the expansion with up to $20 million in revenue bonds for what’s called Project Cardinal.
NGK, which has operated its West Virginia plant since 1995, is planning to manufacture spark plugs for the after-market.
NGK Attorney Ellen Maxwell-Hoffman told the EDA the company has been successful in producing spark plugs and oxygen sensors for new vehicles through agreements with automakers but it’s now the after-market that is growing.
“Because of semiconductor shortages and changes in the combustion engine environment we’ve seen an upswing in the after-market,” Maxwell-Hoffman said.
NGK has gotten the approval from the company’s headquarters in Nagoya, Japan, to pursue the after-market business, according to Maxwell-Hoffman.
“The after-market is clearly an area where they’ve got the approval from headquarters to proceed to modify the plant in order to support that capacity,” she said.
Maxwell-Hoffman said it’s not clear how many jobs will be created with the expansion but said NGK has added jobs every time it’s expanded previously.
“The company has historically increased its employment with each investment it has made,” Maxwell-Hoffman said.
The revenue bonds will also be used to expand the plant’s distribution warehouse. There also other plans for changes but Maxwell-Hoffman said they’ve yet to receive final approval.
The Kanawha County plant, which produces 40 million spark plugs a year, currently has approximately 600 workers. Maxwell-Hoffman said it’s been a good partnership.
“It’s challenging to maintain employment and retention but the company has. from their statistics, been able to retain their workers and in part it is because of the commitment the company has had to its workforce just as much as the workforce has been committed to the company,” she said. “It’s been a great partnership from the employment status and well as the company’s appreciation for their continued support of the company.”
NGK has financed other expansions through the EDA. The company’s currently liability is less than $500,000 the authority was told Thursday.
EDA action in connection with Jackson County property
The development authority also Thursday approved a pair of resolutions having to do with the property in Jackson County where Berkshire Hathaway is going to build a solar energy operation to power a new titanium producing plant.
The EDA authorized borrowing up to $10 million for ongoing environmental remediation costs at the former Century Aluminum plant site and amended its contract with the company that’s doing the remediation work.