Cabinet for Economic Development
Governor Beshear Announces Ferus Corp. to Locate New Liquid Nitrogen Facility in Letcher County
Warehouse and storage facility to create 34 new jobs, result in $30.8 million investment
JENKINS, Ky. (June 23, 2010) – Gov. Steve Beshear today joined Ferus Corp. and community officials in Jenkins for a groundbreaking ceremony to commence the location of the company’s new liquid nitrogen facility in eastern Kentucky. Ferus specializes in providing integrated solutions to the energy industry for well stimulation, well completions and enhanced oil recovery. The project will create a minimum of 34 new jobs and entail a capital investment of $30.8 million in the Commonwealth.
“Kentucky is pleased to welcome Ferus as its newest corporate citizen,” said Gov. Beshear. “The creation of 34 new jobs and a $30.8 million investment will have a positive economic impact on the Letcher County community. I am confident Ferus will quickly establish itself as an active community partner and through a continued partnership with state and local government, will grow and prosper in the Commonwealth.”
Ferus is constructing a liquid nitrogen plant and associated transportation and storage equipment, which will be based in the Gateway Industrial Park near Jenkins. The plant is expected to be operational by the end of 2011 and will be capable of producing up to 200 tons of liquid nitrogen per day. The product will be delivered to plant storage, customers’ yards or directly to well sites, depending on the customers’ needs.
“This is a historic day for our company as we initiate our new business model in the United States and begin constructing the first of hopefully many new plants and operational bases in the region,” said Dick Brown, president and CEO of Ferus. “The state and local officials in Kentucky have been incredibly supportive of our efforts and we are grateful.”
The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved Ferus for tax incentives up to $2 million through the Kentucky Business Investment program. The incentive can be earned over a 15-year period through corporate income tax credits and wage assessments.
KEDFA also approved Ferus for tax benefits up to $192,000 through the Kentucky Enterprise Initiative Act, an incentive program that allows approved companies to recoup Kentucky sales and use tax on the cost of construction materials, building fixtures and equipment used for research and development.
“This is a good day for Letcher County because new opportunities are opening up that will provide a boost to the local economy and bring jobs to the area,” said Sen. Johnny Ray Turner, of Drift. “With the decision by Ferus to locate its new $30 million facility in Letcher County, there is the anticipation of a minimum of 34 good jobs with good salaries and good benefits. In the next couple of years, construction workers also will have a chance to be involved in building a facility for the nitrogen liquefaction plant. This is a great opportunity for the area. I join Gov. Beshear, Judge Ward, Mayor Dixon, the magistrates, the councilmen and other officials in welcoming Ferus to Kentucky and to Letcher County. This is the right company at the right time at the right place. Their success is our success – let’s all work together toward that goal.”
“What a great day for Letcher County and eastern Kentucky,” said Rep.Leslie Combs, of Pikeville. “We appreciate the commitment Ferus Corp. has made to our region. Coal continues to be our number one industry but we need more diversification to help compliment the coal industry.”
“We want to welcome Ferus to Letcher County and the Gateway Park,” said Jim Ward, Letcher County Judge Executive. “We pledge our continued cooperation and support toward their success in Letcher County.”
“We are excited that Ferus has decided to locate in the Gateway Park at Jenkins,” added Jenkins Mayor Charles Dixon. “We will aid them in any way to ensure that this is a successful endeavor that will be good for Ferus and the people of Letcher County.”
Further information on Ferus can be found at www.ferus.ca. A detailed community profile for Jenkins (Letcher County) can be viewed at http://thinkkentucky.com/EDIS/cmnty/index.aspx?cw=073. Information on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com.