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LINAK U.S. Begins $22 Million Expansion In Louisville, Kentucky

05/09/2017
LINAK U.S. Inc., a Denmark-based company that manufactures linear actuators for hospital beds, office desks, farm equipment and other uses, started construction on its $33 million expansion in Louisville, Kentucky. The company is expected to create 413 full-time jobs.

The approximately 145,000 square-foot building will double the size of LINAK’s manufacturing plant on Stanley Gault Parkway. The investment includes the purchase and installation of new production equipment. The project will allow LINAK to improve efficiency generate higher profits and make more reliable deliveries to customers while lowering production costs by 25 percent. LINAK’s leaders expect to double output and sales over the next five years, according to the Kentucky Cabinet For Economic Development.

“With this expansion LINAK will significantly increase the domestic production footprint which we know is highly valued by our customers,” said Jan Peterson, Vice President of Operations at LINAK. “Since day one, both the city of Louisville and the commonwealth of Kentucky have been a great home for us. We are excited to continue our partnership with this community for years to come.”

As an incentive to encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority in December 2016 preliminarily approved the company for tax incentives up to $3.5 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.

Additionally, KEDFA approved LINAK for up to $350,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing. LINAK also can receive resources from the Kentucky Skills Network.

“Since locating in the commonwealth more than 20 years ago, LINAK has steadily grown its business and presence, in Louisville,” Governor Matt Bevin said. “We are witnessing another great investment in Kentucky as ground breaks today on the expansion of LINAK’s Louisville-based manufacturing facility. Kentucky is on the rise, and I thank LINAK for its decision to select Kentucky to support its expansion. We hope to see continued growth for years to come.”

LINAK opened a sales office in Louisville in 1994 and established its manufacturing facility in 1999, which currently employs 300 people. “LINAK’s expansion and investment in Louisville is a testament to our city’s strength in advanced manufacturing, which is a key component to our economic success , today and in the future,” Mayor Greg Fischer said.

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