Cabinet for Economic Development
Governor Beshear Announces Sekisui Specialty Chemicals America to Retool Calvert City Plant
Company to invest more than $2.6 million, retain 77 jobs
CALVERT CITY, Ky. (July 14, 2010) – Gov. Steve Beshear today joined Marshall County and company officials at the Sekisui Specialty Chemicals America plant in Calvert City to announce the company will invest more than $2.6 million to retool its acetic acid facility in order to continue operations and productivity at the site. The reinvestment project will allow the company to upgrade its infrastructure and components and retain its 77 existing employees.
“It is vital to Kentucky’s economic recovery and growth that our existing industries continue to reinvest in their operations, maintaining competitiveness and securing employment opportunities for Kentucky citizens,” said Gov. Beshear. “The Commonwealth is proud to be on ongoing partner in these important economic development projects and very much looks forward to working with Sekisui as it prepares for the future.”
Established in 1947, Sekisui produces high-performance resins to meet market needs in fields such as electronics, information recording materials, automotive industry and industrial materials. The company purchased the Calvert City Polyvinyl Alcohol facility in 2009, which produces 99.9 percent pure glacial acetic acid used in products such as paints, coatings, pickling and dialysis.
The company’s infrastructure and components in the Calvert City plant require well planned maintenance to keep in good operating condition. The Commonwealth is partnering with Sekisui with an incentive package that will not only allow the company to replace a section of its distillation tower with super high alloy metal, but will also encourage the company to make additional investments in the future.
The Kentucky Economic Development Finance Authority preliminarily approved Sekisui for tax incentives up to $888,000 through the Kentucky Reinvestment Act, a program that was expanded in the Governor’s Incentives for a New Kentucky bill last summer to assist companies that need to make significant capital investment in Kentucky facilities in order to remain competitive.
The incentive package will not only help to retain 77 existing Kentucky jobs and spur a multi-million investment in the Commonwealth, but will also improve the reliability and long term viability of the Calvert City Sekisui plant, enabling the company to remain competitive in a highly cost-sensitive market.
“The Commonwealth of Kentucky has always been very helpful to Sekisui Chemical,” said Tsuyoshi (Tony) Okano, Sekisui Specialty Chemicals America COO and president. “The support from Gov. Beshear and the Kentucky government was the main reason why our headquarters in Japan approved this huge investment for the distillation tower. I would like to show my deepest appreciation for all the support given to us so far, and I would also appreciate the continuous support of Sekisui Specialty Chemicals America.”
“A project such as this means the retention of many jobs for this area,” said Mike Miller, Marshall County Judge Executive. “This is a very important factor for the economy of our entire region and we are very excited about this investment.”
“I am most proud,” added Calvert City Mayor Lynn Jones. “This announcement brightens the future for Sekisui employees. It challenges Calvert City to move forward with plans to strengthen and support Sekisui’s commitment and investment. This is a great day for Marshall County.”
A detailed community profile for Calvert City (Marshall County) can be viewed at http://thinkkentucky.com/EDIS/cmnty/index.aspx?cw=097. Information on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com.