Wichita JV Launches, Plans Blending Plant


Wichita JV Launches, Plans Blending Plant

Lubrication Engineers Inc. has begun planning a U.S. $35 million manufacturing facility near its headquarters in Wichita, Kansas, with joint venture partner Kyodo Yushi USA Inc.

The JV, known as Kyodo Yushi Manufacturing Americas LLC, will build a 10,700 square meter plant on 15 hectares of land in north Wichita, according to the citys office of urban development.

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Based on the projects 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.

Both companies declined to provide more details on the project.

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

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 Yushi USA’s Japanese parent company, Kyodo Yushi Co., 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.

Photo: Lubrication Engineers