Bonfiglioli USA, a subsidiary of Italy-based Bonfiglioli Riduttori S.p.A. and leader in power transmission for mobile and self-propelled machines, is opening its first U.S. production line in Hebron, Kentucky. The Facility, which also serves as the company’s North American headquarters, is expected to create up to 42 new jobs in northern Kentucky.
Bonfiglioli has operated an 80,000-square-foot facility on Hargrave Drive, near the Cincinnati/Northern Kentucky Airport, since 2007. The company currently employs about 90 people in northern Kentucky. The expansion includes a new production line of planetary gearboxes for mobile machinery, which are used to support the construction, mining, agricultural and forestry industries. The Hebron production line will increase the company’s annual capacity to better serve demand in the U.S. market.
“When Bonfiglioli first established operations in the USA, we chose the northern Kentucky region because it had a lot to offer in terms of proximity to the airport and our clients, a solid economic strategy for growth and a talented and diverse workforce,” said Greg Schulte, President of Bonfiglioli North America. “We also received, and continue to receive, fantastic support from the Commonwealth of Kentucky and local organizations like Northern Kentucky Tri-Ed. We look forward to continued collaboration with the Commonwealth and others who are dedicated to growing the region and making northern Kentucky a great place to live and work.”
As an incentive to encourage the investment and job growth in northern Kentucky, the Kentucky Economic Development Finance Authority preliminarily approved the company for tax incentives through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.
KEDFA also approved the company for tax benefits through the Kentucky Enterprise Initiative Act, which allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing equipment.
“Bonfiglioli’s expansion is a remarkable example of the thriving advanced manufacturing sector we have built in our region,” said Steve Arlinghaus, Kenton County Judge-Executive and Chairman of Northern Kentucky Tri-County Economic Development Corporation. “Northern Kentucky Tri-ED is working with our existing manufacturers and primary industries to help facilitate expansions and create new jobs, exactly like this project, through NKY Boost, our business retention and expansion program.”
“Bonfiglioli’s expansion is part of a growing trend in Kentucky,” said Lt. Gov. Crit Luallen. “More and more companies – both domestic and international – are learning that the Commonwealth has the workforce, infrastructure and support needed to take their operations to even greater heights.”