Custom Resins Inc. plans to double the size its plant in Henderson, Kentucky. The company will increase capacity with an investment of up to $12 million. The project is expected to create 40 jobs in the region.
The company produces specialty nylon resins used for molded parts including automotive components. The company plans to build a 100,000 square-foot addition to house up to eight compounding extruders and peripheral equipment.
The firm’s General Manager Herb Rawlings said Kentucky’s and the local region’s advantages of location, infrastructure, cost of energy and labor market played into the decision.
“With the help of Kyndle and state economic development agencies, we were able to make this project happen,” Rawlings said. “Custom Resins has been making specialty nylon resins at the Henderson site for nearly 60 years. With this expansion we will be able to reach new markets and make new resins from sustainable, bio-based raw materials. We are excited to be able to expand on our commitment to our customers and the Henderson community.”
As an incentive to encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives up to $700,000 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, Custom Resins was preliminarily approved by KEDFA for $200,000 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. The company is also eligible to receive resources from the Kentucky Skills Network.
“These 40 new jobs being created by the Custom Resins expansion are a powerful boost to the local economy in Henderson County. Manufacturing jobs are the economic backbone of America, and we want the world to know that Kentucky is the perfect place to make quality products. Northwest Kentucky should be proud of maintaining a pro-jobs atmosphere that encouraged one of its long-time employers to expand,” Governor Matt Bevin said.
With about 35 million pounds of annual production capacity, the Custom Resins plant operates 24-7. By adding new reactors and other equipment, the plant will be able to polymerize newly developed nylon resins using sustainable raw materials.
Its parent company, Polymeric Resources Corporation, also operates facilities in Wayne, New Jersey and Ontario, Canada. Together, its facilities produce nylon resin for further processing into residential and commercial carpet, packaging, injection-molded products, wire and cable sheathing and lawn, garden and power tool products.