Cabinet for Economic Development
Governor Beshear Announces Start up and Expansion of Two Kentucky Research and Development Companies
Remington co-locating R&D in Elizabethtown; Navistar opens subsidiary in Bowling Green
FRANKFORT, Ky. (Aug. 26, 2010) – Gov. Steve Beshear today announced two research and development companies will create 25 new jobs and invest nearly $2.4 million in the Commonwealth. Remington Arms Company Inc., the nation’s oldest continuously operating manufacturer of shotguns, rifles and ammunition, will invest $1.5 million to locate part of its firearms research and development into its Elizabethtown facility. The expansion will create 15 new jobs, 13 of which are considered high-tech and technical support jobs with an average annual salary of approximately $59,500, exclusive of benefits.
Additionally, Pure Power Technologies LLC, a company formed in January 2010, will start up operations in Bowling Green. The new company, a wholly owned subsidiary of Navistar Inc., which manufactures MaxxForce® diesel engines and medium and heavy-duty trucks bearing the International brand, was established to facilitate the development of next-generation clean engine controls and emissions management solutions. A client of the Bowling Green Innovation and Commercialization Center, the start-up company will create 10 new, high-tech and technical support jobs.
The economic development projects were approved for a combined funding award up to $300,000 by the Kentucky Economic Development Finance Authority (KEDFA) through the Cabinet for Economic Development’s High-Tech Investment Pool. The pool is used to support technology-based and research-intensive companies and projects in the Commonwealth. The Kentucky statewide network of six Innovation and Commercialization Centers (ICCs) and seven Innovation Centers (ICs) provides locally accessible, business-building consulting and related services to Kentucky’s entrepreneurs and scientists.
“The funding of Remington Arms Company and Pure Power Technologies for research on the latest firearms and truck engines exemplifies the wide range of advanced technologies being developed across the Commonwealth,” said Gov. Beshear. “It also demonstrates that many of the world’s best-known and most successful companies consider Kentucky scientists and engineers to be an attractive workforce to support their high-tech operations.”
According to the company, in 2009, Remington’s operations in the Commonwealth provided 268 full-time jobs, generated nearly $10 million in annual compensation for Kentucky residents and more than $3.7 million in state and local tax revenues. The company’s KEDFA award of up to $200,000 will be used to pay for facility up-fitting and equipment costs as part of the company’s $1.5 million effort to co-locate part of Freedom Group’s R&D into the Elizabethtown location. The funds will enable the company to advance its firearms research for both military and sporting purposes. (www.remington.com)
“We thank the Commonwealth of Kentucky for its support of Remington and our continued expansion throughout the Commonwealth,” said John M. (Sean) Dwyer, chief technology officer for Remington. “Kentucky has always been extremely friendly to our products and has proven once again that it values our business presence. We look forward to continuing our development of innovative firearms that serve the needs of hunters, shooters, and our military personnel in Elizabethtown, Kentucky.”
“Elizabethtown is very proud to support the expansion of the Remington Arms R&D facility,” said Elizabethtown Mayor David Willmoth, Jr. “Remington has been an excellent corporate citizen with their firearms and ammunition research and development division since 1994. We are very excited that they have chosen to expand their Elizabethtown facility and add 15 new jobs to our economy.”
Pure Power Technologies was awarded up to $100,000 to purchase equipment in support of the research and development of actuation systems for valves and throttles that are used in diesel truck engine applications, as well as in automotive engine applications. (www.navistar.com)
“The advanced valve technology developed by Pure Power Technologies drives differentiation in our clean, modern MaxxForce diesel engines,” said Houman Kashanipour, president, Pure Power Technologies. “We appreciate the Commonwealth of Kentucky’s support of our efforts to develop high-tech components that enable our customers to meet EPA 2010 emissions standards.”
“This is a wonderful opportunity to move Bowling Green toward a greener economy,” said Bowling Green Mayor Elaine Walker. “We congratulate Pure Power Technologies for their decision to locate within the Innovation and Commercialization Center at Western Kentucky University, and we look forward to not only watching the company grow, but also play a role in reducing emissions.”
KEDFA also preliminarily approved Pure Power Technologies for up to $100,000 and Remington Arms Company for up to $340,000 in tax credits through the Kentucky Business Investment (KBI) program. The performance-based KBI incentive can be earned over a 10-year period through corporate income tax credits and wage assessments. Additionally, Remington was approved by KEDFA for up to $66,000 in tax benefits through the Kentucky Enterprise Initiative Act, a program that allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing equipment.
More information about Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com. # # #