Cabinet for Economic Development
Governor Beshear Announces The Standard Group to Invest, Add Capacity at Jeffersontown Plant
Company benefits from expanded incentive program passed during 2009 special legislative session
FRANKFORT, Ky. (October 7, 2009) – Gov. Steve Beshear and Economic Development Cabinet Secretary Larry Hayes today announced The Standard Group, a privately held folding carton converter, will invest $3.2 million in its Jeffersontown manufacturing operation in an effort to add capacity and increase efficiencies.
“It’s vital that Kentucky’s existing industries have the tools and resources they need to become even more competitive in today’s economy,” said Gov. Beshear. “The Commonwealth is pleased to partner with The Standard Group to ensure the company’s continued growth and longevity in central Kentucky.”
A manufacturer of folding cartons for some of the country’s leading brand and private label manufacturers, The Standard Group currently employs 147 Kentuckians. In order to increase business opportunities, The Standard Group will retool its Jeffersontown facility, adding new equipment to improve product diversity. The investment will allow the company to penetrate new end-use markets.
“We are proud to have owned and operated our facility out of Jeffersontown, Kentucky, for over 25 years,” said Lou Cortes, president of The Standard Group. “The addition of all the new equipment at this facility allows us to compete in more markets and will increase our business over the upcoming years.”
The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved The Standard Group for up to $1 million in tax benefits under the recently expanded Kentucky Reinvestment Act (KRA). The 10-year program was expanded during the 2009 Special Session of the Kentucky General Assembly in HB 3, also known as the Incentives for a New Kentucky bill, sponsored by Rep. Tommy Thompson of Owensboro.
The revised legislation expands the KRA program to allow not only automotive-related manufacturing companies, but all Kentucky manufacturing entities making a minimum investment of $2.5 million (formerly $100 million) in a Kentucky facility to be eligible for tax benefits. The legislation also eliminates the requirement that the existing company employ 1,000 full-time employees to qualify for the program and allows the Cabinet for Economic Development to negotiate a full-time employment base the company must maintain.
“As one of the premier folding carton manufacturing plants in the country, The Standard Group has a long history of success in Jeffersontown,” said Jeffersontown Mayor Clay Foreman. “My hope is, with this investment, the company will not only be able to stabilize, but grow their employment well past the current employment level of nearly 150 jobs. I applaud The Standard Group’s investment and appreciate Governor Beshear, the state legislature and the Kentucky Cabinet for Economic Development for pushing forth recently enacted mechanisms that promote investments made by existing companies.”
A community profile for Jeffersontown can be viewed at http://thinkkentucky.com/EDIS/cmnty/index.aspx?cw=113.
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