Cedartown’s Kimoto Tech, Inc. announced in a press release on Monday, July 25, a $6 million capital investment project that will allow the film-coating company to progress with the advancement of new technologies and sustain their global competitiveness.
The Cedartown Development Authority approved a memorandum of understanding to allow Kimoto Tech to move forward with selling bonds to pay for their equipment purchases locally, along with an agreement to allow for a tax abatement from several of the local authorities when selling the bonds.
Kimoto Tech, owned by of Kimoto Co. Ltd, headquartered in Saitama, Japan, is making an investment mainly in new equipment for a production line in the 110,000 square foot manufacturing and corporate office facility.
Cedartown is also the site for Kimoto Tech’s 13,000 square foot Research and Development Center.
“We are very excited about Kimoto’s capital investment project,” said Cedartown City Commission Chairman Larry Odom. “Kimoto has been and continues to be a successful model of an industry that not only excels in their field, but also serves as an example of a fine community partner and neighbor. The commission and the City of Cedartown looks forward to working alongside Kimoto in this project and in the future.”
The investment will include the addition of a Class 1000 Clean Room Compact Coating Line and multiple technology upgrades to the existing coating line.
“These improvements will permit Kimoto Tech, Inc. to support new advanced touch screen, display, electronic and IoT (Internet of Things) markets,” explained Kimoto Tech Inc., President Miguel Leal. “The rapid advancement of technology in recent years has changed the landscape of manufacturing considerably. Kimoto Tech Inc., is making every effort to remain relevant with ever changing demands for optical grade and specialty coated films. These two enhancements to our Cedartown manufacturing operations will permit Kimoto Tech Inc., to remain competitive in domestic and international markets.”
Leal said one line will be getting a $1 million equipment upgrade following several years of 8 major upgrades to the line. A previous production line shut down prior to economic hard times was moved out, and the rest of the investment will be spent on equipment purchases and facility upgrades for what Leal called the "compact line."
New equipment has been ordered and is being produced, Leal said, and should be delivered and begin full operations in April or May of 2017, depending on how long upgrades take to complete.
He also said the parent company in Japan had previously considered a $30 million upgrade to the facility in Cedartown, but the value of the Yen made that too risky of an investment for them to consider.
The capital investment project was made public during tonight's meeting of the Cedartown Development Authority. Kimoto Tech acknowledged appreciation for the significant contributions for this project by the Development Authority of Polk County, the Cedartown Board of Commissioners and the Cedartown Development Authority.
“These vital public institutions are making this investment possible through tax incentives in support of local industry,” Leal said. “Capital investment by public corporations coupled with local government support of industry will always remain key ingredients in sustaining a vibrant community. Kimoto Tech, Inc. wishes to express gratitude to all members of these two organizations for assisting Kimoto Tech, Inc. in establishing a future within Polk County and the State of Georgia.”
Georgia Department for Economic Development Commissioner Chris Carr also expressed gratitude to the local boards and commended Kimoto for continuing to build on a decades-long operation.
“We are excited that Kimoto Tech, Inc. has continued to grow and thrive in Georgia for nearly 30 years,” said Georgia Department for Economic Development Commissioner Chris Carr. “The local support from the Cedartown Board of Commissioners, the Cedartown Develop-ment Authority and the Development Authority of Polk County is a testament to the importance of providing resources to our existing industries as they are the backbone of our state.”
Kimoto Tech opened their operations in Cedartown in 1985.