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ECONOMIC DEVELOPMENT- July 2003 by Jennifer E. Kustes
The list shows that eight new manufacturing firms will bring 788 new jobs, and three new service firms will bring 427 new jobs to the state this year. The expansion of 29 manufacturing firms will create 780 jobs, and seven expanding service firms will create 67 jobs. That’s more that 2,000 new jobs. According to the state development cabinet, new industries are defined as companies locating in a Kentucky community for the first time, companies locating an additional facility in a community with a new product line, or the reopening of a facility after an announced permanent shutdown of operations. Expansions are defined as companies increasing employment, capital investment or square footage to physical facilities. The three largest new manufacturing firms listed, the T. Marzetti Co, Kyosan Denso manufacturing and Toyoda Boshoku Corp., will invest a total of $54 million and bring 400 new jobs to three of Kentucky’s small communities. These and many other Kentucky communities will reap the economic benefits of increased employment opportunities and added economic diversity. The T. Marzetti Company is investing $31.8 million in a Hart County plant and will employ 191 people. It will be the third largest employer in Hart County, where Glasgow is the county seat, with a $4.6 million payroll. “That’s a handsome boost for us,” said Glenn Thomas, a consultant for the Hart County Industrial Authority. Marzetti is building a 220,000-square-foot plant, and they anticipate opening the plant in the summer of 2004. The plant will produce salad dressing and sauces. The plant will be located in Progress Park, between Horse Cave and Cave City. Thomas said the plant will draw employees from surrounding counties as well, providing a boost for the Central Kentucky region.
“It’s a big outfit with a great reputation,” said Thomas. “We’re excited about it.” According to Thomas, Hart County offers several qualities to the Marzetti Company, including the employee base, the right demographics and the right location for their suppliers. The company conducted interviews with existing industries and found a good strong work ethic and an available work force. “It’s my understanding,” said Thomas, “that they looked at over 70 locations and we were the finalist. We were willing and capable of meeting their employee needs.” Thomas also believes that the biggest factor in winning over Marzetti was the county’s willingness to build a sewer pre-treatment facility, which will relieve a lot of headaches and environmental issues for the company. “It’s good for them and it allows us to be the stewards of our own environment,” he said. Thomas said the Marzetti plant’s impact on the economic development of the county will be “strongly positive.” It will increase the tax base, the school base, and the Gross National Product for the entire community. The payroll will roll over several times in a small community, he said. The new plant will also enable citizens to find employment within the county, instead of commuting to find work. “There is no downside to growth and progress for our community,” Thomas said. “I see opportunities for people to get good jobs with benefits.” Montgomery County will also reap the benefits of a new industry. The Kyosan Denso Manufacturing of Kentucky plant, or KDMK, will soon open. The parent company, Kyosan Denki America, is investing $12.3 million, and the plant is expected to bring 230 jobs in the next four years. “We’re very fortunate to have an employer, not only to employ more people, but to have a Japanese company,” said Sandy Napper, executive director of the Mt. Sterling/Montgomery County Industrial Authority. KDMK is Montgomery County’s first Japanese company, and the new plant is the company’s first North American facility. KDMK is an automotive supplier of fuel system parts whose largest customer is Toyota. The plant is a joint venture between Kyosan Denki America, Inc. and Denso International America, Inc.
Marlene Goldsmith, senior public relations manager at Denso International America, said the company liked Montgomery County because it was centrally located to their customers. The company also looks at nearby universities and gauges the potential workforce. “Quality is a huge concern, and the people in the plants are critical. Montgomery County looked to be a good place for human resources,” added Goldsmith. The fact that Mt. Sterling is a small community located close to major areas works well for Denso, Goldsmith said. The company’s culture is honest and sincere, and small towns represent those qualities, she noted. The company is also huge on the environment, according to Goldsmith. “They live it, they don’t just talk about it. I should think that would be very good for Mt. Sterling.” Napper is hoping that other Japanese companies will follow KDMK into Montgomery County. “When you have a prospect in your community, others will see they have the confidence to invest in the community, and you hope it will bring others in. KDMK is a great employer and a great company,” she said. KDMK won’t be the top-paying employer, but it will be in the top percentiles in wages and benefits for Montgomery County, Napper noted. They will use what they can locally and will be a tax-paying corporate citizen. Goldsmith said deep research precedes the selection of a location. “We expect the combination of Kyosan Denki and Denso and the people of Mt. Sterling to be a success.” Another Japanese firm, The Toyoda Boshoku Corp., is investing $10 million for a new plant in Marion County, near Lebanon. The plant will manufacture headliners for Toyota Camry and Lexus automobiles. Toyoda Boshoku has purchased 18 acres in the South Lebanon Industrial Park to build a 6,000-square-foot building and has formed a company called Toyodabo Manufacturing Kentucky, LLC. Tom Lund, Executive Director of the Marion County Industrial Foundation, expects the plant to employ about 50 people and anticipates that Toyoda Boshoku has expansion plans. It will be the first facility in the United States for the company, which is one of the most prestigious companies in Japan and was formed before Toyota Motor Manufacturing. The company liked the location in Lebanon because the raw materials they will need are made there, and it puts them close to the Georgetown Toyota plant. The company also likes the large contingent of Japanese families already in the area, who like the scenery because it is a lot like Japan, Lund said. “They are a
good fit with existing facilities, and their philosophy relates to the
labor force. They are very nice, compatible people to work with,”
Lund said, “and the jobs mean a lot to us. I think anytime you
can create a new entity, it has a positive effect on the people’s
attitude and on the community. I see that as a gain.” Jennifer E. Kustes is
a staff writer for The Lane Report. |
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Copyright 1996-2003, by Kentucky Business Online. All rights reserved. Editorial content
is copyright 2003, Lane Communications Group The Lane Report is a trademark of Lane Communications Group. All other trademarks are the property of their respective owners. |
Many
Kentucky communities will get a boost in economic development this year
as a grand total of almost $336 million is pumped in through new and
expanding industries, according to the Kentucky Economic Development
Cabinet. 
The
more than 100-year-old company is owned by Lancaster Colony Corporation
which also has locations in Atlanta, Ga.; Buffalo, N.Y.; San Jose, Calif.;
and Columbus, Ohio. Lancaster Colony reached $1 billion in sales for
the first time in 1998.
Napper
said one thing that attracted KDMK to Montgomery County was the location.
The new plant will be located in the Donnelly Building, on the north
end of the county in the Woodlands Industrial Park.