CGS Machine & Tool Inc., a parts producer for manufacturers, will invest $2.75 million to expand its plant facility in Bowling Green, Kentucky.
CGS plans to invest in upgrades at its Bowling Green operation in response to continued growth and its recently approved ISO certification. The certification will allow the company to boost its presence throughout the US, specifically within the automotive industry. With this project, CGS would install new state-of-the-art equipment and conduct renovations of its facility to meet evolving customer demands.
“CGS Machine & Tool has a number of new opportunities. We’ve been blessed since deciding to locate in Bowling Green,” said Steve Allen, CEO of CGS. “I’m excited about what the next 5 years will bring for this company. We expect to not only see manufacturing growth, but additional high-end CNC equipment will allow us to serve a larger market.”
Founded in Russellville in 1994, CGS began in a 5,000-square-foot facility with five employees and a limited customer base. The company has since relocated to Bowling Green, where it now encompasses approximately 24,000 square feet at each of the two facilities, with around 50 employees and more than 150 customers throughout the Midwest and Southeast.
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $250,000 in tax incentives based on the company’s investment of $2.75 million and annual targets of creating and maintaining 15 Kentucky-resident, full-time jobs, across 10 years and paying an average hourly wage of $26 including benefits across those jobs.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, CGS can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.
“It is great to see a Kentucky-based company like CGS Machine & Tool further its commitment to the local workforce and remain in our state as its business continues to grow,” Governor Andy Beshear said. “We at the state want to ensure continued job growth throughout Kentucky, and the success of existing companies such as CGS is crucial to achieving that goal. Congratulations to CGS and the Bowling Green community for the newly announced jobs, and we look forward to similar announcements across the commonwealth for years to come.”
Ron Bunch, president and CEO of the Bowling Green Area Chamber of Commerce, said, “We have worked with CGS Machine & Tool for a number of years, and we could not be more proud to see the company continue to grow here in Bowling Green,” Bunch said. “I fully expect CGS to continue to grow for years to come, and I look forward to what comes next for the company.