Cabinet for Economic Development
Gov. Beshear Cuts Ribbon for ZF Steering Systems in Northern Kentucky, 374 New Jobs Created
Project represents $95.8 million investment, one of Kentucky’s largest job-creation and investment projects announced in 2010
FLORENCE, Ky. (Sept. 7, 2011) – Governor Steve Beshear today joined community leaders and company officials from ZF Steering Systems LLC to celebrate the completion of its $95.8 million expansion in Northern Kentucky. The project entailed the construction of two new buildings totaling 175,000 square feet on its existing site and is creating 374 new full-time jobs over the next two years.
“The expansion of ZF Steering is an excellent example of how state and local government, community representatives and the private sector all worked together to create a strong partnership to create jobs and investment in the Commonwealth,” Gov. Beshear said. “I couldn’t be more pleased to see this project become a reality and to know that global companies such as ZF Steering continue to display their confidence in the Commonwealth by creating jobs and making long-term investments.”
ZF Steering Systems is a subsidiary of Germany-based ZF Lenksysteme GmbH and has been located in Kentucky since 1994. The company manufactures steering components for passenger cars and SUVs. The company added capacity to meet demand for its new electric steering gear.
“ZF is excited to announce the completion of our expansion to the Florence plant, which was driven by increasing interest in a product that helps save fuel,” said Pierre Abboud, president, ZF Steering Systems. “The Servolectric electric power steering gear is a pillar of ZF’s increasing role in the resurgent North American automotive market – and it’s proving to be the right product at the right time.”
An incentive package was preliminarily approved by the Kentucky Economic Development Finance Authority to encourage the near $100 million investment in Kentucky. ZF Steering was approved for up to $7.5 million in tax incentives through the Kentucky Business Investment program. The performance-based incentive can be earned over the term of the agreement through corporate income tax credits and wage assessments.
“This is wonderful news for Boone County,” said Sen. John Schickel, of Union. “This expansion will give the people of Northern Kentucky access to new job opportunities, which can lead to further economic development and a better quality of life for local families.”
“I want to congratulate ZF Steering on today’s expansion and further strengthening their corporate relationship in Northern Kentucky,” said Rep. Addia Wuchner, of Florence. “It is encouraging in this tough economy to see companies like ZF Steering increase their workforce by more than 370 employees. I salute them for bringing more highly skilled, highly paid jobs to our region.”
ZF Steering’s expansion was one of Kentucky’s largest job-creation and investment projects announced in 2010. New and existing companies have announced the creation of more than 3,700 new jobs in Northern Kentucky during Gov. Beshear’s administration. These economic development projects represent a more than $547.5 million capital investment in the Commonwealth.
“Cooperation has been the key for this significant project moving forward for one of our existing companies,” said Boone County Judge-Executive Gary Moore. “The local entities, city of Florence, airport, Boone County staff and Northern Kentucky Tri-ED working cooperatively with the Kentucky Cabinet for Economic Development to meet the needs of ZF Steering Systems. As a result, the company has made a very significant capital investment, as well as creating a large number of new jobs for the community.”
“Working with ZF Steering Systems on this project has been a pleasure,” said Florence Mayor Diane Whalen. “The city of Florence and all of Northern Kentucky are grateful for the capital investment and the employment opportunities that ZF is providing to our community. Working together with ZF Steering, the city of Florence, Boone County Fiscal Court, the Kenton County Airport Board and Northern Kentucky Tri-ED have created the opportunity for our region to prosper and grow business in Northern Kentucky.”
For more information on ZF Steering, visit www.zf-lenksysteme.com/english/index.php.
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.