Cabinet for Economic Development
Governor Beshear, Mayor Abramson Announce Startup of Three New Companies in Louisville
TRAX Mechanical Systems, Liberty Processing & Services Innovation and Bio Pharma Logistics to create a combined 145 new jobs, invest nearly $13.5 million
LOUISVILLE, Ky. (Feb. 23, 2010) – Gov. Steve Beshear and Louisville Mayor Jerry Abramson today joined company officials from TRAX Mechanical Systems, Liberty Processing and Services Innovation and Bio Pharma Logistics, all startup companies, to announce they will begin operations in Louisville. The new projects will result in a combined 145 new jobs and nearly $13.5 million in the Commonwealth.
“The fact that these three diverse companies chose Louisville as the home of their new startup operations is a testament to the talented workforce and pro-business climate available in Kentucky,” said Gov. Beshear. “Together Trax Mechanical, Bio Pharma Logistics and Liberty Processing will create 145 new full-time jobs for Kentuckians and invest nearly $13.5 million. I am delighted to welcome each of them as Kentucky’s newest corporate citizens.”
Trax Mechanical Systems LLC will open its first North American manufacturing operation, a new $6.6 million facility, with more than 93,000 square feet of manufacturing space, on National Turnpike in Louisville. The plant will operate as the company’s primary production site, providing assembly, fabrication, remanufacturing and warehousing of commercial vehicle undercarriage components like axles and suspensions and complete axle systems for its North American customer base. Trax is partnered with global manufacturing sources and will be performing final fabrication and assembly of product for its aftermarket and original equipment manufacturer channels for the commercial truck and trailer market. Trax’s new facility is expected to employ more than 100 during the coming months, with its first products being shipped to customers within two months.
“The fact that both our corporate headquarters, as well as our first manufacturing facility, is purposefully located in Louisville, is indicative of the business-focused cooperation put forth by the state and by the city,” said Sergio Carvalho, president and CEO of Trax Mechanical Systems. “Our new facility will have a national and global reach and will provide solid career positions for our team of talented employees.”
Bio Pharma Logistics, established in 2007, operates as a third-party logistics provider dedicated to the pharmaceutical and bio-pharma industry. The company will locate in a 50,000 square-foot building on approximately 11 acres in Riverport where it will operate a cold-storage facility to provide warehousing, storage and distribution of pharmaceuticals and frozen human blood plasma. Bio Pharma anticipates creating 25 new jobs and will invest nearly $5.9 million.
“Location is an important factor for our distribution and transportation operations. Our distribution hub must be as centrally located as possible to be efficient in serving both our domestic and international markets. We considered a number of locations in several states,” said Steve Snyder, president of Bio Pharma Logistics. “From our first contact with Louisville and Kentucky representatives, it was apparent that they were highly interested in the possibilities that our company brought to the community. The efforts of Louisville Metro and Greater Louisville Inc. personnel on our behalf, together with the incentives granted by the Commonwealth of Kentucky through the Kentucky Business Investment Program, convinced us that choosing Louisville, Kentucky, for our home was a win-win situation for the local community and Bio Pharma Logistics.”
Liberty Processing and Services Innovation, established in August 2009, will open an 11,000 square-foot check processing facility in southeast Louisville, close to General Electric’s Appliance Park. Operations at the facility will include printing, sorting, packaging and logistics. The company will provide low-cost solutions for paper-based check processing by converting imaged transactions into image replacement documents for paper clearing. Liberty will create 10 new jobs and invest $988,000.
“Two of the key success factors to the Liberty Processing solution are access to a knowledgeable talent pool and a logistics capability that can reach anywhere in the United States,” said Earl Jennings, CEO of Liberty Processing. “Louisville was the perfect solution for us due to access to personnel with a background in check clearing and also the ability to leverage the logistics capability of UPS. Our growth plans should enable us to greatly exceed our initial requirement for 10 employees and to be a solid contributor to the financial health of Louisville.”
The Kentucky Economic Development Finance Authority preliminarily approved all three companies for tax benefits under Kentucky’s newest incentive program, the Kentucky Business Investment Program for the following amounts: up to $2 million for TRAX Mechanical System; up to $350,000 for Bio Pharma Logistics; and up to $150,000 for Liberty Processing and Services Innovation. The incentives can be earned over a 10-year period through corporate income tax credits and wage assessments.
“These new jobs come at a time when the city needs them most,” said Mayor Abramson. “We are climbing out of the recession, company by company, job by job.”
"The announcement by these three companies to open their businesses in Louisville is positive news for our community," said Joe Reagan, president & CEO of Greater Louisville Inc. - the Metro Chamber of Commerce. "Despite the sluggish economy, this type of growth reinforces us as a great place for new businesses."
A community profile for Louisville can be viewed at http://thinkkentucky.com/EDIS/cmnty/index.aspx?cw=091. Information on Kentucky’s economic development efforts is available at www.ThinkKentucky.com.