Cabinet for Economic Development
Governor Beshear Announces Cooper Standard to Expand in Mt. Sterling
Growth made possible with passage of HB 287, extending previously approved incentives
MOUNT STERLING, Ky. (June 27, 2011) – Governor Steve Beshear today joined community leaders and officials from Cooper Standard in Mt. Sterling to announce the company will expand its Montgomery County operations, resulting in 120 new jobs. The growth was made possible, in part, by House Bill 287 passed by the General Assembly during the 2010 regular session.
The legislation, which impacts companies previously approved for tax incentives through the former Kentucky Rural Economic Development Act (KREDA), provides the state the ability to extend the term of a company’s tax incentive agreement for up to 10 years.
“The downturn in the automotive industry in recent years forced Cooper Standard to make hard decisions about reducing capacity to cut costs and remain competitive,” said Gov. Beshear. “Because of the passage of HB 287, Cooper Standard chose to bring additional work to Kentucky and grow its operations here. This is an excellent example of bi-partisan cooperation that is allowing us to create jobs and investment in Kentucky.”
To be eligible, a company must commit to additional investment or job creation, must be consolidating operations currently located in another state to a Kentucky facility, and must have used less than 60 percent of the credits originally awarded. The total amount of credits available to the company is not increased, but the company is given additional time to recover those credits originally awarded.
The Kentucky Economic Development Finance Authority approved Cooper Standard (formerly Cooper Tire and Rubber) for tax incentives through KREDA in 1996. Its tax credits, which were set to expire in 2011, were extended for an additional 10 years as a result of HB 287. The company will add 120 new jobs in addition to its existing 310 employees.
“Due to the cooperation from the Commonwealth of Kentucky and local officials, we were able to engage in meaningful and frequent dialogue, which led to a solution that has helped Cooper Standard retain and create new business for our manufacturing facility in Mount Sterling,” said Larry Johnson, vice president, North American Operations. “We were very impressed with the team work of the state and local governments as they worked together to provide the necessary incentives to help Cooper Standard’s Mt. Sterling facility remain competitive in the global automotive market.”
Cooper Standard, a leading global automotive supplier specializing in the manufacture and marketing of systems and components, will invest an additional $3 million in its Mt. Sterling facility, located at 250 Oak Grove Drive. Additionally, the company will consolidate operations from an out-of-state facility to the plant. Cooper Standard supplies all major global automotive original equipment manufacturers and suppliers with 50 percent of its sales occurring outside of North America.
“This is a great day for Montgomery County and the region,” said Sen. R.J. Palmer II, of Winchester. “This expansion is not just an investment by Cooper Standard, but is also an investment by the Commonwealth of Kentucky in our local economy. This expansion will provide additional good-paying jobs for Montgomery County and the area. Cooper Standard is a good neighbor and I am pleased it has chosen to grow its operation right here in central Kentucky. I also appreciate Governor Beshear for taking the lead to support Cooper Standard’s expansion.”
“I’ve been looking forward to this day ever since I began working closely with Cooper Standard to see what the state could do to help it grow,” said Rep. Richard Henderson, of Jeffersonville. “House Bill 287, which I was proud to sponsor, came out of those discussions, and today’s ribbon-cutting is the result of that law. This is a win for the company, a win for our community and a win for dozens of families who will benefit from these jobs. I’m glad I could play a role in making it happen.”
“This is a great announcement for Montgomery County and the entire region,” said Rep. Rocky Adkins, of Sandy Hook. “I was honored to work with Rep. Richard Henderson and Sen. R. J. Palmer to modify our existing economic development incentives to help Cooper Standard expand its operations and increase its workforce. I want to thank Cooper Standard for their confidence in and commitment to Kentucky and our people. This expansion of 120 jobs is tremendous news that will provide an outstanding boost to our economy.”
“Cooper Standard has been a great corporate citizen to our community and having them expand here only strengthens our relationship with them,” said Mt. Sterling Mayor Gary Williamson. “We are ecstatic about this expansion and want to do our part to help them continue their success here.”
“The addition of employment opportunities is something every county is pleased to announce,” added Wallace Johnson, Montgomery County Judge-Executive. “We are so proud and pleased to have Cooper Standard announce these good-paying jobs for our area residents and to have the name Cooper Standard in our industrial base. I also pledge my support to ensure their success here.”
For more information on Cooper Standard, visit www.cooperstandard.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 Mt. Sterling (Montgomery County) can be viewed at http://thinkkentucky.com/EDIS/cmnty/index.aspx?cw=052.
Follow Governor Beshear on Twitter @Govstevebeshear, read the Governor’s personal notes on his blog at http://blog.governor.ky.gov/, and view the Governor's weekly YouTube commentary at http://www.youtube.com/governorbeshear.