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Area Development - Site Selection, Facility Planning and Workforce Development

SRC of Lexington Expands Fayette County, Kentucky, Operations

05/17/2024
SRC of Lexington, a remanufacturer of OEM and aftermarket products, plans to expand production operations in Fayette County, Kentucky. The $15.3 million project is expected to create 60 jobs.

The investment includes the purchase of a facility, located on 14 acres, that features approximately 180,000 square feet of manufacturing, warehouse and office space.

“This expansion is a pivotal development for our organization,” said Tim Stack, executive vice president at SRC Holdings Corp. “This state-of-the-art facility dramatically increases our capacity and efficiency, allowing us to better serve our customers and grow. Thanks to collaboration with the Kentucky Cabinet for Economic Development, Commerce Lexington and Lexington Fayette Urban County Government, we are set to grow in the Lexington economy and push the boundaries of innovation and sustainability in the remanufacturing industry.”

To support the project the Kentucky Economic Development Finance Authority preliminarily approved a 1-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $840,000 in tax incentives based on the company’s investment of $15.3 million and annual targets of: creation and maintenance of six Kentucky-resident, full-time jobs across 10 years; and paying an average hourly wage of $35.22 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.

“What an exciting time to be a manufacturer in the commonwealth,” noted Governor Andy Beshear. “We are seeing incredible growth within this key industry in every corner of the state, which is helping provide quality, well-paying jobs for Kentuckians and their families. SRC has had success here in Lexington for a long time, and I am excited to see that continue for years to come.”

In addition, SRC of Lexington can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

“SRC of Lexington has been a great corporate partner in our efforts to strengthen the greater Lexington region’s economy,” added Commerce Lexington President and CEO Bob Quick . “We are thrilled that SRC was successful in finding a larger facility and will continue its growth right here in Fayette County. A core component of our economic development strategy involves business retention and expansion, and our team is committed to helping our existing businesses grow and prosper.”

SRC of Lexington is an employee-owned company that remanufactures engines and engine components, hydraulics, and power-train products for OEMs and large customers in the construction, mining, and oil and gas industries.

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