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November 8, 2016

Volume 7 Issue 8

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Kyodo Yushi to Build U.S. Blend Plant

Japanese grease maker Kyodo Yushi has begun planning a U.S. $35 million manufacturing facility in the United States with American joint venture partner Lubrication Engineers Inc. 

The JV, known as Kyodo Yushi Manufacturing Americas LLC, will build a 10,700 square meter plant on 15 hectares of land near Lubrication Engineers’ Wichita, Kansas, headquarters, according to the city’s office of urban development.

Based on the project’s capital investment and expectations that it will carve out average annual salaries of $95,000 for at least five employees in the next five years, the firm qualifies for a 100 percent economic development tax exemption from the city, which it is currently seeking. Based on its cost-benefit formulas, the city said the project will likely get a 76.5 percent tax exemption.

Kyodo has a sales office in Rolling Meadows, Illinois, but the Wichita facility will be its first manufacturing location in North America. Kyodo also considered locations in Oklahoma City, Dallas and Chicago.

Headquartered in Fujisawa, Kanagawa Prefecture, Kyodo’s Japanese parent company specializes in greases such as automotive wheel bearing greases and mill greases and produces metalworking fluids and machine oils such as cutting and grinding lubricants, rolling oils and forging oils. Along with several production facilities in Japan, it has manufacturing bases in South Korea, Singapore, China and Indonesia and sales offices throughout the world.

Lubrication Engineers makes a full line of greases and lubricants including industrial oils, gear oils, food-grade lubes, wire rope lubricants and more.