British-based Zotefoams Inc., a world leader in cross-linked block foams, is expected to invest nearly $22 million to expand its manufacturing capabilities at the company’s North American headquarters in Walton, Kentucky.
This new investment will allow the Walton facility to become a full-process site. The move, which includes adding 53,000 square feet to Zotefoams Inc.’s existing facility on Precision Drive, is expected to help the company be more competitive in the U.S., better serve its existing customer base and significantly increase its global capacity.
“Northern Kentucky Tri-ED and the Kentucky Cabinet for Economic Development helped tip the decision for our global capacity investment towards Walton versus the alternatives explored,” said Dan B. Catalano, president of North America, Zotefoams Inc. “The cohesive, concerted effort and genuine interest in us and our business, coupled with the support and incentives, sent a powerful message to our board of directors of Zotefoams plc.”
Zotefoams Inc. is a subsidiary of United Kingdom-based Zotefoams plc. For more than 30 years, Zotefoams plc imported its finished products to North America. In the late 1990s, the company opened Zotefoams Inc. in Walton. Zotefoams began to import partially processed raw materials from the U.K. and perform the final manufacturing in northern Kentucky.
As an incentive the encourage the investment and job growth in northern Kentucky, the Kentucky Economic Development Finance Authority preliminarily approved the company for tax incentives up to $600,000 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 up to $100,000 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.
“Kentucky welcomes Zotefoams Inc.’s growth and success in northern Kentucky,” Governor Steve Beshear said. “We’re extremely pleased that a company of Zotefoams’ worldwide influence would choose to expand operations in the Commonwealth, which is another testament to Kentucky being the ideal place for companies to do business.”
“We’re thrilled that Zotefoams is expanding its facility and adding jobs in Walton,” said Northern Kentucky Tri-ED Chairman and Kenton County Judge-Executive Kris Knochelmann. “This project helps demonstrate the effectiveness of NKY Boost, Tri-ED’s business retention and expansion program, and our efforts to facilitate the success of our existing industries in northern Kentucky.”