STATE
Kentucky Launches New Resource for Entrepreneurs

The Kentucky Cabinet for Economic Development has added a new Internet resource to its Web site to help guide entrepreneurs through the process of planning, launching and expanding their businesses.

The Entrepreneur Resource Navigator (ERN) is an interactive tool that allows business people to plug in their home county and locate the closest service provider where they can obtain face-to-face help for their small business needs, explained J.R. Wilhite, commissioner for the state’s Department for Community Development.

In addition to finding local resources within 30 miles of a business location, the ERN also offers information and links to help provided by state and federal governments. Available resources include counseling and training, micro-loan programs, small business development centers, university-based business programs, area development districts and funding sources.

“We’ve seen a continuing increase in the demand for information related to small business,” said Wilhite. “Business owners are hungry for information and they are increasingly turning to the Internet.”

According to the U.S. Small Business Administration, small businesses in Kentucky employed 740,203 workers or just over half the total private sector workforce (1999).

The Entrepreneur Resource Navigator is available at www.thinkkentucky.com/smbd/ERN.

LOUISVILLE
New Medical Program Ties Physician Pay to Performance

Louisville and Cincinnati have been selected to launch a new medical program that will tie physician payments to performance.

The “Bridges to Excellence” program is the result of a coalition that consists of physicians, health plans and large employers. The coalition was created to encourage a higher quality of medical care by rewarding healthcare providers who demonstrate “safe, timely, effective, efficient, equitable and patient-centered care.”

Under the new program, top-performing doctors could see income gains of up to 10 percent in the form of bonuses paid by participating employers, which include General Electric, Ford, Proctor & Gamble, UPS, and Verizon. These physicians will also be highlighted in provider directories, helping employees and their families identify doctors with proven outcomes in treating particular illnesses, or whose patient care and support systems are exemplary.

Physicians played a significant role in developing the effort and shaping an incentive structure that would appeal to their fellow doctors and spur investments in quality.

“A lot of physicians would like to invest in information systems to help deliver better care, but insurance payments haven’t covered those costs,” said Thomas Lee, M.D., chief medical officer with Partners Community Healthcare, Inc., a Boston healthcare company that helped shape the new initiative. “Bridges to Excellence changes the financial picture – it makes investing in systems to improve care easier.”

Bridges to Excellence is being introduced in Boston, Cincinnati and Louisville – three metro areas that are heavily populated by employees of the companies supporting the program. The first initiative, Diabetes Care Link, will be launched in Cincinnati, Louisville, and Boston, Mass. The second, Physician Office Link, will be piloted in Boston. A Cardiac Care Link will be introduced later this year.

More information about the initiative is available at www.bridgestoexcellence.org. Groups interested in launching the program in other markets, or joining in the current markets, should contact MEDSTAT at (734) 913-3000 or www.medstat.com.

OWENSBORO
Loews Corp. Buyes Texas Gas For $1.045B

Owensboro-based Texas Gas Pipeline has been sold for $1.045 billion to Loews Corp., a New York holding company that owns CNA Financial, Lorillard tobacco, Loews Hotels and Bulova watches.

Texas Gas, which was created with the 1945 merger of Memphis Natural Gas and Kentucky Natural Gas Co. of Owensboro, currently employs 650 workers, 275 of which are located in Owensboro. Oklahoma-based Williams Companies bought the company in 1995, but put it up for sale earlier this year in hopes of generating some much-needed cash. The sale to Loews is expected to close this month.

Texas Gas owns and operates a 5,800-mile pipeline system that transports natural gas from the Gulf Coast, east Texas and north Louisiana to markets in the southern United States through the Midwest. The company’s territory includes the cities of Memphis, Louisville, Indianapolis and Cincinnati.

Loews CEO James Tisch has said that the new owners plan to keep the management team “in place and in Owensboro,” adding that Loews likes to act as an umbrella company, leaving its divisions to operate on their own.

With Owensboro once again operating as a divisional headquarters office – which it had not been in recent years – Texas Gas will be adding some support positions that had previously been transferred to other cities. The number of new jobs has not yet been determined.

ELIZABETHTOWN
New MeadWestvaco Plastics Plant to Bring 100 Jobs to Elizabethtown

MeadWestvaco Corp. has selected a site in Elizabethtown on which to open a new plant that will produce plastic cases for DVDs.

The company’s AGI Polymatrix Group will operate out of a 200,000-s.f. facility in Hughes Industrial Park that previously housed Superior Essex, a copper cable company that shut down last year, eliminating 235 jobs.

AGI’s Elizabethtown plant, which is expected to open by the end of the year, will operate 24 hours a day, seven days a week and will supply customers in Alabama, Tennessee and Illinois. The company anticipates hiring approximately 100 workers.

Connecticut-based MeadWestvaco currently employs approximately 800 people in Kentucky, with an AGI Media printing facility in Louisville and a paper mill, chemical plant and forestry operation in Wickliffe.

STATE
State's Tourism Industry Rebounds in 2002, Revenues Top $9.1 Billion

The economic impact of Kentucky’s tourism industry topped $9.1 billion in 2002, rebounding from a nationwide downturn experienced in 2001, according to figures recently released by Tourism Development Cabinet Secretary Ann Latta.

Expenditures were up $452 million over 2001, an increase of 5.2 percent, and tourism-related employment showed an increase as well, gaining 4,355 jobs. State and local tax revenues also rose.

More than 164,000 Kentuckians are now employed in the state’s tourism industry, which contributed over $942 million in state and local taxes.

Latta, whose cabinet administers tourism marketing and incentive programs, said she was “extremely pleased” with the 2002 numbers, noting that state tourism has seen a 28.4 percent increase over the past seven years.

Significant growth was achieved in Eastern Kentucky last year, which Latta attributed to the cabinet’s development and promotion of a new tour, based on a country music theme, designed to attract motorcoach operators. The Eastern Highlands-North region registered an 11 percent increase in travel expenditures last year, the largest percentage gain of any of the state’s nine travel regions.

“Governor Patton designated $2 million from coal severance taxes to be used to promote this tour and two others that will be launched this summer,” she explained. The 2003 tours are scheduled for southeastern and western Kentucky, and the music tour will be repeated.

Latta also attributed the positive growth to the Kentucky Tourism Development Act, which has pumped nearly a half-billion in private capital into new or expanded tourism attractions.

GEORGETOWN
New Toyota Camry Solara to Hit Dealer Showrooms This Summer

LOUISVILLE
North American RV Rally Expected to Pump $12M into Local Economy

The Great North American RV Rally will roll into Louisville this month for the first time, bringing more than 5,000 recreational vehicles to the Kentucky Fair & Exposition Center.

Sponsored by magazine publisher Affinity Group Inc., the rally – scheduled for June 16-19 – will include educational seminars for RV owners, entertainment by well-known artists such as the Oak Ridge Boys and Lee Greenwood, and a trade show for RV manufacturers and equipment suppliers. (Visitors interested in checking out the newest features in recreational vehicles can purchase a daily pass to the trade show, which will showcase some 1,000 new RVs.)

In addition, scheduled tours will take participants to attractions throughout the state, including the Kentucky Horse Park, Shakertown and Mammoth Cave. Area tourism officials estimate that the rally will pump some $12 million to the local economy.

This year’s rally is the fourth year for the event, which has previously been held in Wyoming, Georgia and California. Rally organizers note that only a “handful of facilities” in the U.S. can accommodate a rally of its proportions. Affinity selected Louisville for this year’s event because of its central location: Last year’s rally in California saw a significant decline compared to previous events, which organizers attribute to the distance involved for many attendees.

BEREA
Dresser Instruments Will Move Kentucky Operations to Brazil in '04

One of Berea’s oldest manufacturers has announced plans to close its Madison County plant, leaving some 240 employees without jobs.

Dresser Instruments, which has been making commercial pressure gauges used in air compressors and fire extinguishers since 1961, plans to move its Berea operations to Sao Paulo, Brazil, where it currently employs a staff of 120 and can manufacture goods at much less cost. The average hourly pay for employees at the Berea plant is more than $13, compared with less than $2 in Brazil.

The company expects to close the Berea plant in about 12 months.

In the meantime, Berea officials are hoping to launch an “entrepreneur center” to help encourage the development of new business and provide training for displaced workers.

LEXINGTON
Chamber Seeks Businesses' Helop in Lobbying for New D.C. Air Service

The Greater Lexington Chamber of Commerce is seeking assistance from area companies to help secure nonstop air service from Lexington’s Blue Grass Airport to Washington, D.C.’s Reagan National Airport (DCA).

In a letter sent out from the chamber, Adam Edelen, the chamber’s vice president of operations, noted that “as a ‘slot-controlled’ airport, take-offs and landings at DCA are strictly limited to control congestion in and around the airport. In recent years, slots have been made available only when airlines discontinue service to Washington.”

Edelen went on to say that “Lexington must demonstrate by letters of support and other documents that the best use of the slot times would be to allocate them to Lexington. Without having access to this market and having some service, Lexington and Blue Grass Airport remain an unknown to the airlines and government officials and unable to fully demonstrate its ability to fill the premium slots.”

Area businesses are being asked to submit letters of support to Norman Mineta, secretary of the U.S. Department of Transportation.

In March, Comair filed a petition with the Federal Aviation Administration to provide daily nonstop jet service between Lexington and Washington, utilizing a 50-passenger Canadair Regional Jet. If approved, the flight would depart Washington at 8:15 a.m. and arrive in Lexington at 9:45 a.m. Departures from Lexington would be at 12:40 p.m., arriving in D.C. at 3:00 p.m.

RICHMOND
New EKU Office Designed to Assist

Eastern Kentucky University has opened a new office with a focus on the development new business concepts and high-tech job opportunities throughout the eastern region of the state.

The Eastern Innovation Region Office is part of the state’s Office for the New Economy (ONE). The innovation office, which will serve 46 counties in the eastern region, is charged with increasing the number of high-tech jobs and businesses in the region and helping existing businesses grow with the aid of “new economy” technologies and/or businesses practices. Businesses working with the innovation office will have access to the university’s knowledge resources to help meet the practical needs of their operations.

Developing New Economy businesses in the region face special challenges. The Appalachian region of Kentucky lags behind the Commonwealth and the nation in a number of key economic indicators, including personal income, poverty, and employment. To address these problems, the Eastern Innovation Region will address the area’s economic challenges by targeting entrepreneurs and offering a comprehensive array of programs and services.

Several programs have already started. An Innovation and Commercialization Center provides technical and business assistance to qualified entrepreneurs and scientists whose ideas have significant market potential. In addition, the state has developed a series of investment-like funds aimed at promoting and capitalizing early-stage technology commercialization.

In addition, satellite centers will be established in Ashland, Corbin, Monticello, Pikeville, Somerset and West Liberty, providing comprehensive entrepreneurial services, including mentoring and a business acceleration program. A business incubator is also planned to foster the development of high-tech businesses related to Safety and Security, a statewide focus of the Office for the New Economy that is headquartered in EKU’s College of Justice and Safety.

For more information, contact Executive Director Cheryl Moorhead Stone at 859-622-2334.

RICHMOND
Plexus Announce Plans to Close Richmond Plant with 300+ Layoffs

After nearly 20 years and a major expansion only two years ago, an electronic component manufacturer has announced plans to close its Richmond plant.

Wisconsin-based Plexus, which designs, assembles and tests parts for clients such as General Electric and Siemens, has launched a restructuring plan that involves closing the Richmond facility and shifting production to other sites in the U.S. and Mexico.

The shutdown is being blamed on the soft economy and a reduced demand for electronic parts.

Plexus opened its Richmond location in 1985 and in 2001 launched an expansion that doubled the facility’s size to 118,000-s.f., making it the second largest plant in Richmond. With some 340 people now left without jobs, the layoff is one of the largest experienced by Richmond in nearly 10 years.

LEXINGTON
Racehorse Adoption Center to be Established at Kentucky Horse Park

A $1 million facility is being established at the Kentucky Horse Park, where retired racehorses will be available for adoption to interested parties.

The 22-acre facility, which will be called the Secretariat Center in honor of the legendary Triple Crown racehorse, is being funded in part by a program sponsored by Keeneland and Maker’s Mark. The two recently announced the expansion of their limited edition Maker’s Mark Mile bottle program, which will distribute 18,000 special bottles of Maker’s Mark bourbon throughout the state for $40. The newly expanded program, which will run for three years, is expected to generate $600,000 for the new center.

The special Maker’s Mark Mile bottles have previously only been available in Fayette and Woodford counties, with proceeds from the 7,500-bottle distributions benefiting various Lexington-area charities.

The Thoroughbred Retirement Foundation expects to find homes for up to 300 horses each year, twice the number currently being adopted. Visitors to the new center, which will house 20 horses, will be able to see and adopt a horse on the spot.

RUSSELL
Community Stunned by Abrupt Shutdown of Applied Card Systems

The community of Russell has lost hundreds of jobs with the unexpected announcement from Applied Card Systems that it is closing its Russell facility.

The company, which bills itself as “America’s fastest growing credit card servicing company,” employed nearly 800 people as of last summer, though the roster had shrunk to less than 400 by April.

Applied Card Systems is the collection branch of Cross Country Bank, a company that issues credit cards to consumers with poor credit history. ACS Senior Vice President Charlie Albano told employees that “due to regulatory concerns about the high risks associated with this market sector,” the company had “lost a significant number of account relationships” over the last year. Company officials said that although they had tried different strategies to replace the decline in business, the company could no longer function without “radical adjustments.”

In a letter to employees, ACS President Tim Lehmann said the company is working to implement new lines of business and may reopen the facility at some future point.

The company opened the Russell office in 1999. Its Beckley, West Virginia office, which is also being closed, opened in 2000. The company is now left with three facilities: Huntington, W. Va., Glen Mills, Pa., and Boca Raton, Fla.

LEXINGTON
Major Retailers Sign on for New Hamburg Commercial Development

Circuit City, H. H. Gregg, Walgreen’s and Chick-fil-A are among the major retailers that have already signed on for space in a new section of commercial development under construction near I-75 in Lexington.

The new center, to be called Sir Barton Place, will encompass approximately 300,000 s.f. of space. It will be located adjacent to Hamburg Pavilion, the sprawling retail center that was first commercial development to be erected on property that was once part of the Hamburg Place horse farm.

The master plan developed for Hamburg Place also features the construction of residential and office space, both of which are already taking place. The first phase of a section offering elegant townhomes has been selling quickly and sales have also been brisk for two traditional residential subdivisions. One Hamburg Place, a three-story office building, is scheduled to open this month.

INDIANA
Promotional Products Supplier Moves Corporate HQ to Indianapolis

Norwood Promotional Products has announced plans to move their corporate headquarters from Austin, Texas to Indianapolis by the end of the year, creating 80 new full-time positions.

At least 20 of those jobs will be executive level positions with annual salaries of $100,000; the remainder of the positions will average around $41 an hour.

The decision to move came as a result of the company’s need to place corporate headquarters closer to its customers and operations.

“Many of our customers are based in the Midwest and eight of our 11 U.S. operating facilities are in the Midwest, including one in Auburn, Indiana,” explained Chief Executive Officer Tom Roller. “It is also critical to have all of our executive team members in one location for greater productivity and efficiency.”

Norwood sells more than 6,000 promotional items and ranks as the industry’s largest supplier, with annual sales approaching $400 million. The company employs more than 3,500 across 18 locations, including Canada and Hong Kong.

Louisville was among the cities being considered by Norwood as it began its search for a new location. Other contenders were Milwaukee, Chicago, St. Louis and Cincinnati. Louisville remains in the running for a Norwood customer support center that would employ some 350 workers. However, that facility is not expected to be operating until 2005, at the earliest.

INDIANA
Success in Tissue Engineering Brings Expansion for Biotech Firm

Cook Biotech Inc. is building a new 55,000-s.f. manufacturing, research and development facility in West Lafayette’s Purdue Research Park that represents a five-fold expansion for the company and the promise of more high-tech jobs for the area. Cook, which specializes in tissue engineering, presently employs a staff of 70.

The new $6 million facility will enable the company to meet the increasing demand for its medical products: Biotech manufactures a special tissue harvested from swine intestines that is developed into strong, sterile, pliable sheets that are used for the surgical repair of hernias, wounds, burns and other soft-tissue injuries. The new plant is expected to be completed by the middle of next year.

Purdue Research Park is also home to several other biotech companies and is the future site of a $7 million industrial pharmacy center that will manufacture drug products for clinical trials. The research park is expected to become Indiana’s first certified technology park, a designation that is the state’s newest economic development tool for promoting high-technology industries.

Business Briefs

BARDSTOWN

• Dawahares, a Lexington-based clothing retailer, has announced plans to open its first store in Bardstown. The family-owned chain, which has been in business for over 90 years, operates more than 25 stores in Kentucky, Tennessee and West Virginia.
• Heaven Hill Distilleries has broken ground on a new visitor center that is expected to draw more than 40,000 guests a year. The new building will incorporate natural materials utilized in the bourbon-making process – such as copper, limestone and white oak – and is designed to evoke images of the barrel storage warehouse known as a rickhouse that stands near the site.

BOWLING GREEN

• Commonwealth Health Corp., Bowling Green’s largest employer, is downsizing its workforce by approximately five percent in an effort to contain rising costs. Company officials say that in addition to increased costs associated with patient care, CHC is also faced with declining reimbursements from Medicare and third-party insurance providers. The cut affects about 150 of the company’s 2,700 employees. CHC operates offices in six Kentucky counties.
• In an effort to help ease the area’s nursing shortage, Greenview Regional Hospital has donated $475,000 to Western Kentucky University’s nursing program. The funds, which will provide for nursing scholarships as well as faculty support, professional development, research and technological enhancement and equipment, will be matched with $100,000 from the state’s Regional University Excellence Trust Fund. WKU’s nursing program has seen its number of applications rise, but has encountered difficulty in recruiting faculty because nurses can make more money working in the medical field as opposed to the classroom.
• Only six months after opening its Bowling Green automotive brake plant, Kirui USA Corp. has announced an expansion that will allow for a fivefold increase in production. The expansion will add 28 new jobs to the company’s existing staff of 16.

BULLITT COUNTY

• Louisville-based Jewish Hospital HealthCare Services has been granted state approval to construct a new $35.5 million out-patient care center in Bullitt County. Construction is expected to begin by the end of this year, with completion targeted for July, 2005. The facility will be situated on a seven-acre parcel that is part of planned 20-acre medical center campus.

CARROLLTON

• The Louisville firm of Brasch-Barry General Contractors Inc. has opened an office in Carrollton in order to more efficiently serve the Northern Kentucky and Southeastern Indiana markets. The company’s new office will offer design-build services as well as general construction services such as planning and bidding.

CLINTON

• Jakel Inc. will close its small-appliance motor plant in Clinton this month, eliminating 160 jobs. The majority of the plant’s operations will be moved to Mexico, with the remainder relocated to Jakel’s Murray plant. The reorganization will result in the addition of approximately 30 jobs at the Murray plant and company officials have said any Clinton employees who wished to transfer to Murray have been given the opportunity to do so.

CORBIN

• Citing cutbacks in state and federal reimbursements, Baptist Regional Medical Center has begun layoffs that will ultimately eliminate 58 positions. Medicare, Medicaid, self-pay and charity patients make up nearly 90 percent of the patient load at BRMC, a 240-bed facility that is part of the Louisville-based Baptist Healthcare System. In 2001, the hospital became the first healthcare facility in the state to earn the Governor’s Gold Quality Award, which is the highest level of Commonwealth of Kentucky Quality Awards.

DANVILLE

• Centre College has been named by the Commission on Presidential Debates as one of the 14 sites under consideration to host a general election debate in 2004. In 2000, Centre hosted the only debate between vice presidential candidates Dick Cheney and Joe Lieberman, an event that drew more than 28 million television viewers and high praise for Centre. In return, Centre has since seen its enrollment figures increase and both the college and the community have gained national recognition. The commission plans to announce the 2004 final debate sites in November.

EASTERN KENTUCKY

• State tourism officials say that new golf courses slated to open next month at Grayson Lake State Park and Yatesville Lake State Park could help pump millions of dollars in to the area economy. In a recent visit to Ashland, Tourism Development Cabinet Secretary Ann Latta defended the state’s decision to move forward with the completion of the 18-hole courses despite the budget crunch. “Golf courses are good business,” said Latta, pointing out that golfers traveling to the courses in Carter and Lawrence counties will spend money on food and accommodations.

ELIZABETHTOWN

• First Federal Savings Bank of Elizabethtown is continuing its expansion into the Louisville market with a second Jefferson County branch slated to open next year. The bank opened its first Jefferson County location four years ago inside a Hillview Wal-Mart. Its newest location will be a stand-alone branch on Hurstbourne Parkway.

FRANKLIN

• Cable giant Comcast Corp. has purchased the Tele-Media’s cable operations in Franklin, Kentucky and nearby White House, Tennessee. Pennsylvania-based Tele-Media is in the process of selling off its area cable television franchises: The company sold its Scottsville operation to North Central Communications in December and has put the Russellville franchise up for sale.

GLASGOW

• T.J. Samson Community Hospital has teamed with The Medical Center of Bowling Green to operate the Barren River Regional Cancer Center in Glasgow.

HARDIN COUNTY

• The Hardin County Fiscal Court has approved the allocation of $30,000 to help restore an instructional position at the Challenger Learning Center, one of three such facilities in the state that provides hands-on science lessons for school children. The city of Radcliff was forced to reduce the center’s funding earlier this year, cutting some $160,000 out of its $400,000 operating budget. Officials are hoping to boost the center’s revenue by attracting more schools to the facility, which would thereby lessen the need for city support.

HARRODSBURG

• The Bright Leaf Golf Resort and Conference Center has expanded its conference facilities to offer 3,200 s.f. of meeting space that will accommodate up to 250 people. The expansion also included a number of technical upgrades. The resort also features a 27-hole regulation and lighted Par 3 course, a 105-unit hotel and a full-service restaurant.

HEBRON

• Comair has announced plans to begin daily round-trip jet service between the Cincinnati/Northern Kentucky International Airport and State College, Pennsylvania, home to Pennsylvania State University. The airline will operate the service three times daily.

JOHNSON COUNTY

• American Standard has cut 50 jobs at its Johnson County facility in Hager Hill, where it produces brass plumbing fittings. American Standard officials said that while the move was regrettable, the company could operate more efficiently by moving the operations involving those 50 positions to its plant in Mexico, which is nearly double the size of its Johnson County facility. The cutback leaves the Kentucky plant with approximately 200 employees.

LEBANON

• Lebanon will soon be home to Toyodabo Manufacturing, a division of Japan-based Toyoda Boshoku Corporation that produces molded headliners for the automobile industry. The $9.8 million plant is expected to be operational by August 2004 and is expecting to employ 24 workers by the end of 2007. The plant will primarily supply parts to Toyota Motor Manufacturing Kentucky’s plant in Georgetown.

LEXINGTON

• The University Club of Kentucky, home to UK’s men’s and women’s golf teams, has been sold for an undisclosed price to Danny McQueen, its previous owner. In 1999, McQueen sold the 36-hole course (then known as The Players Club) to University Clubs of America, a South Carolina firm that also owns and operates the University of Louisville’s Cardinal Club course. UK officials have said they would like for the course, which will remain private, to continue as the home for the school’s golf teams.
• The University of Kentucky’s Board of Trustees has approved the construction of two new dormitories, which will add on-campus housing for up to 700 more students. The university currently has space for approximately 5,100 students, but has already received requests from 5,800 for the upcoming fall semester. The new dormitories, which represent the school’s first significant housing construction since the 1970s, are to be open possibly as soon as August 2005.

LOUISVILLE

• The University of Louisville plans to introduce a new graduate certificate program in logistics and distribution, beginning this fall. The program will feature courses designed to support Louisville-area industries.
• Work has begun for a new industrial park on the site of the former Louisville Motor Speedway, which closed in 2001. The Louisville Metro Commerce Center will cover 101 acres and feature 1.6 million s.f. of industry space suitable for large warehouse and distribution users. The first building, a 517,000-s.f. structure, is expected to be complete by October.

LOUISVILLE

• The Star of Louisville, a yacht-style dinner cruise ship that has been operating out of the Port of Louisville since 1988, will soon be making its home in Jeffersonville, Indiana. Despite being a popular attraction for visitors and area residents alike – more than 100,000 guests boarded last year – the Star of Louisville has struggled financially in recent years, prompting a decision by Louisville’s Waterfront Development Corp. to end the Star’s lease agreement there. In July, the ship will be moved across the Ohio River to Jeffersonville, where city officials are hoping its presence will boost downtown revitalization efforts.
• The board of directors for Genlyte Group Inc., a Louisville company that manufactures lighting and lighting controls, has authorized the purchase of 673,000 shares of stock over the next 12 months. As of March 3, the company had 13.4 million shares of outstanding common stock.
• The D. D. Williamson Co. has resumed its production of liquid caramel color after a 1,000-gallon mixing tank exploded at its Louisville plant on April 11, killing one of its employees. As of press time, investigators were still working to determine the cause of the explosion. In the meantime, the company is maintaining a high level of production at its Modesto, California plant until the Louisville facility returns to normal.

MADISONVILLE

• The Wilson & McPherson Inc. insurance company has been acquired by Hub International Limited, a Chicago insurance-brokerage firm. Wilson & McPherson will remain in Madisonville and become part of Hub Midwest, a division that was created when Hub International purchased Fifth Third Insurance Services Inc. last year.

MOUNT STERLING

• Morehead State University is preparing to open a $5.5 million education/training facility in Mt. Sterling that will feature classrooms, compressed video communication and computer lab, and office space. The university has been offering classes in Mt. Sterling since 1978 and has seen enrollment steadily grow to more than 200 students this year. The Clay Community Center, expected to open this summer, will offer a full post-secondary educational program, giving area residents the opportunity to pursue advanced degrees and further industrial training.

NELSON COUNTY

• The Kentucky Cabinet for Economic Development has certified Nelson County as an “economic opportunity zone,” enabling both new and existing manufacturing facilities to gain credit against their Kentucky income tax liability. By investing at least $100,000 and creating at least 10 new full-time jobs, companies will be able to receive up to 100 percent credit on state taxes for up to 10 years. For more information on the program, contact Kim Huston at the Bardstown Industrial Development Corporation at (502) 348-6402 or kimhuston@nceda.net.

NORTHERN KENTUCKY

• The Transit Authority of Northern Kentucky has launched a new shuttle service between downtown Cincinnati and Newport, Kentucky, designed to boost business at Newport on the Levee, a riverfront retail/restaurant/entertainment venue. The Levee Lunch Express will offer weekday bus transportation from downtown Cincinnati to Newport every 10 minutes between 10:45 a.m. and 2 p.m. for a cost of 50 cents.

PADUCAH

• Barkley Regional Airport is currently undergoing $9 million in improvements that include runway extensions, the addition two taxiways, and terminal and equipment upgrades. The airport has seen passenger traffic increase 10 percent over the past year, in spite of struggles throughout the airline industry.
• The court reporting program at West Kentucky Community and Technical College in Paducah has received a $750,000 federal grant that will be used to develop a new captioning program for court reporters and prepare students to work with the hearing-impaired. The funding is significant in light of the fact that the 1996 Telecommunication Act requires captioning of all programming broadcasts by 2006. In addition, Kentucky has the third largest percent (7.59 percent) of hearing impaired and hard of hearing population in the United States. A portion of the funding will also be utilized to educate and retrain court reporters and expand the program to other colleges within the Kentucky Community and Technical College System.

PIKE COUNTY

• Lodestar Energy has closed its Bent Mountain coal mine in Pike County after losing the customer for which the mine was producing coal. The shutdown leaves 70 miners without jobs. Lodestar, which is in the midst of bankruptcy, still has approximately 100 employees in the area and plans no further layoffs, said company officials.

RICHWOOD

• Alcoa has announced that it is closing its Richwood Building Products plant to consolidate its injection molding operations with that of its Gaffney, South Carolina facility. The Richwood plant, which manufactured injection-molded building products such as vents and shutters, was purchased by Pennsylvania-based Alcoa in November 2002 and at that time employed 57 people. Company officials said that some employees have accepted relocation offers while others have received severance packages. Alcoa’s distribution center in Florence will not be affected by the Richwood closing.

SHELBYVILLE

• Pegasus Industries, a Louisville packaging supply and service company, has moved its operations to the former Alcoa Fujikura (AFL) facility in Shelbyville’s Midland Industrial Park. The move allows the company, which presently employs 30 workers, room for future expansion and puts the company in a more centralized location to service customers in the central Kentucky region. Pegasus owner Steve Meador expects the company to grow to 65 employees over the next two years.

SHEPHERDSVILLE

• Flynn Brothers Contracting Inc., a Louisville construction firm, has purchased property in Shepherdsville with plans to develop a 263-acre industrial and business park near Interstate 65. The property is adjacent to a retail center that is currently under construction that will include a Kroger supermarket and a 10-screen theatre complex. Flynn Brothers also plans to build a three-lane, 2.5-mile bypass from Ky. 44 to Ky. 61 at no cost to the city, in addition to donating approximately 20 acres of land.

STEARNS

• Outdoor Venture Corporation, which manufactures modular tents for the U.S. Department of Defense, is preparing to expand its operations to meet an increase in demand for its products as the U.S. launches its reconstruction efforts in Iraq. The expansion is expected to result in the addition of 50 to 75 new jobs in the coming months.

WHITESBURG

• Cook and Sons Mining, Letcher County’s largest private employer, was forced to lay off some 350 workers after one of its two coal silos collapsed. The 100-foot-tall silo is part of the company’s Sapphire plant, which processes and prepares coal for sale. As of press time, the company hoped to have the plant operational again within the coming weeks.

STATE

• The Peoples Republic of China has agreed to purchase $2.4 million of burley tobacco after blocking imported tobacco for nearly decade due to concerns about blue mold, a disease that’s plagued U.S. tobacco farmers but has not been found in China. Though the sale is considered relatively small, The Burley Tobacco Growers Cooperative Association in Lexington is optimistic that the purchase represents the first step in securing larger sales in the future. China’s state-run cigarette manufacturer is the largest in the world.

INDIANA
INDIANAPOLIS

• ATA Airlines has launched nonstop jet service between Indianapolis and San Francisco, fulfilling the wishes of many Indianapolis-area businesses that had been requesting nonstop service to the West Coast. A recent survey of more than 400 businesses indicated that San Francisco was the destination most strongly desired that was not currently served out of Indianapolis on a nonstop basis. Business leaders and city officials maintain that the San Francisco area is home to many high-tech companies and venture capital firms and having connections there could in turn help attract new business to Indianapolis.

OHIO
CINCINNATI

• Great American Insurance Co. has sold Worldwide Insurance Company and its subsidiary, Worldwide Direct Auto Insurance Company, to Response Insurance Group of Cos. for $32.3 million in cash.
• The Ohio Board of Regents has approved a new associate of science degree program in industrial design technology for Cincinnati State Technical and Community College. The program is expected to be offered beginning this fall.
• Convergys Corp., which provides outsourced billing, human resources and customer care services, has announced plans to build a second call center in India, where it expects to employ more than 3,000 workers within the coming year. Located in Bangalore, India’s “Silicon Plateau,” the contact center will provide both general support and advanced technical help desk services. Company officials say India “offers a motivated workforce of highly-dedicated, well-educated, English-speaking professionals and the infrastructure needed to deliver world-class customer care.”

TENNESSEE
ATHENS

• Auto parts manufacturer DENSO Corporation has made the company’s Athens, Tennessee location a separate business, a move that could result in 150 new jobs by the end of the year. The Athens plant - which produces oxygen sensors, fuel injectors, air-flow meters, ignition coils and spark plugs - currently employs 800 workers. The decision to make the facility a separate company was based on the continuous growth seen by the plant. In becoming a separate company, DENSO Manufacturing Athens Tennessee, Inc. has added a general services division, including accounting, payroll, purchasing, and environmental departments. The company has also expanded its departmental services in compensation and benefits and safety and health.

MEMPHIS

• Office supplies distributor Daisytek International has eliminated 160 jobs at its Memphis distribution center, leaving only 10 positions in tact. The cuts are part of a reorganization of the company, which has been having financial difficulties. Staff numbers at Daisytek operations in California, New York and the company’s Texas headquarters have also been cut.

NASHVILLE

• Hosting the first and second rounds of the NCAA Men’s Basketball Tournament this past March brought some $8.8 million to the city of Nashville, according to figures released by the Nashville Sports Council. The council was formed in 1992 to attract sporting events to the city.
  
  

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