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Kayser Automotive Systems USA Expands Manufacturing In Fulton, Kentucky

01/18/2017
Kayser Automotive Systems USA plans to hire 100 additional employees as it expands into a facility next door to its current plant in Fulton, Kentucky.

The 60,000 square-foot building will allow Kayser to increase manufacturing and warehousing space for a variety of mechanical and passenger-cabin automotive parts. The facility could open this spring.

Kayser Automotive Systems GmbH, a German family owned business for over half a century, announced plans in 2013 to build the Fulton plant, its first U.S. facility to serve automakers and tier-one suppliers in the U.S. Making the $26 million expansion possible, the building’s current tenant, MVP Group International, will move its 69 current jobs to its nearby plant in Mayfield, where it will and consolidate its manufacturing of scented candles.

“Expanding our current facility in Fulton, Ky. is the best solution for Kayser Automotive Systems, Fulton County, the surrounding communities, as well as the State of Kentucky. Due to fast increasing business, we outgrew our current facility and needed space to meet our customer’s demands. Expanding in Fulton not only enables us to be efficient using existing infrastructure but also capitalizing on one of our most treasured assets, our dedicated employees,” said Kayser Automotive Systems CEO Stefan Schutte.

The Fulton facility employs about 60 people in manufacturing and assembling plastic injection-molded and metal parts. Products include fuel tank components, engine and under-hood parts, such as activated charcoal canisters, valves, lines, filters and vent ducting, as well vehicle interior components. Kayser Fulton specializes in development and production from 3D simulation to detailed manufacturing to comprehensive testing, all using the latest technologies.

MVP Group, based in Charleston, South Carolina, designs and manufactures private-label and branded candles, candle accessories, home fragrance products and decorative accessory gift products for major retail customers worldwide. By moving its Fulton County employees and production resources to Mayfield, the company expects to increase efficiency while preserving jobs.

“This is a potential win for everyone involved,” said Rodney Bohannon, Vice President & General Manager of MVP Group. “As always our customers and employees are of utmost importance. Having all of our resources under one roof will enable us to be more efficient and cost competitive, which is key in today’s environment.” According to state officials, the complex deal took months to assemble, and includes modification various existing financial incentives and jobs-related agreements, equipment purchase plans and relocation logistics.

To encourage investment and job growth in the region, the Kentucky Economic Development Finance Authority (KEDFA) in July 2013 preliminarily approved Kayser for tax incentives up to $3 million through the Kentucky Business Investment program. and up to $40,000 in tax incentives through the Kentucky Enterprise Initiative Act. It is anticipated the company’s incentive agreement will be modified at the time of final approval to reflect the additional investment and job growth. Both MVP Group and Kayser can receive resources from the Kentucky Skills Network.

“Our administration is dedicated to establishing pro-business policies at every level,” said Governor Matt Bevin. “We are excited for both Kayser Automotive and MVP Group as they move forward with this significant expansion. We anticipate more companies will follow in their footsteps as we work with national, regional, county and community level partners to pave the way for every business in Kentucky to prosper.”

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