Cabinet for Economic Development
Gov. Beshear Announces Linamar Corporation to Undergo Major Expansion,
Automotive parts supplier to invest $40.8 million in new equipment
FLORENCE, Ky. (Oct. 18, 2011) – Governor Steve Beshear today joined community leaders and officials from Linamar Corporation to announce the company will make a significant investment in its Northern Kentucky operation. The company plans to purchase new equipment totaling $40.8 million and will more than double the size of its workforce, creating 138 new jobs.
“The fact that Linamar has chosen to invest more than $40 million and double the size of its workforce in Northern Kentucky speaks volumes to the region’s and the state’s outstanding business climate,” Gov. Beshear said. “The Commonwealth is pleased to partner with community leaders and Linamar to make this growth possible, bringing 138 new jobs to the citizens of Kentucky.”
Linamar manufactures and markets automotive parts and components. The company plans to add the new equipment to its existing 360,000-square-foot facility in order to produce engine components for both Ford and Chrysler. The equipment is expected to be installed immediately, with production up and running by January 2012.
The Kentucky Economic Development Finance Authority preliminarily approved Eagle Manufacturing, a division of Linamar, for tax incentives up to $4.5 million through the Kentucky Business Investment program to encourage the expansion.
“We look forward to expanding our presence in the Northern Kentucky region, and we thank Gov. Beshear and Boone County officials who worked hard to help us create a plan that makes this expansion possible,” said Linamar CEO Linda Hasenfratz. “Eagle Manufacturing will add capacity in our growing automotive business, and give us advanced manufacturing capabilities in an important region central to many of our customers.”
The performance-based incentive allows the company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.
“This expansion is a testimony to the resources that Boone County offers in terms of people and infrastructure,” said Sen. John Schickel, of Union.
“Linamar is a worldwide leader in auto components for manufacturers, thanks in large part to the men and women who work at their Northern Kentucky facility,” said Rep. Sal Santoro, of Florence. “It's that commitment to our region and the Commonwealth as to why they chose this plant for expansion, which will create much needed jobs for Kentucky.”
New and existing companies have announced the creation of more than 4,100 new jobs in the tri-county Northern Kentucky region during Gov. Beshear’s administration. These economic development projects represent more than $600 million capital investment in the Commonwealth.
“Once again, Florence and Northern Kentucky prove that when a positive business climate is present, that includes a skilled workforce and a supportive community, private investment and job creation will follow,” said Florence Mayor Diane E. Whalen. “I am pleased that Linamar has decided to invest in an expansion of their existing operations in Florence.”
“Some of our best job creators are existing industries,” said Gary Moore, Boone County Judge-Executive and Northern Kentucky Tri-ED Executive Committee member. “I’m excited for Linamar as they bring additional jobs to Boone County. This is another example of partnerships among multiple agencies to create new jobs.”
For more information on Linamar, visit www.linamar.com.
Information on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook at www.Facebook.com/ThinkKentucky or follow on Twitter at www.Twitter.com/ThinkKentucky.
A detailed community profile for Northern Kentucky can be viewed at http://thinkkentucky.com/EDIS/cmnty/index.aspx?cw=049.