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Area Development - Site Selection, Facility Planning and Workforce Development

Israel-Based Fibrotex USA Opens Manufacturing Complex in Sterns, Kentucky

09/03/2019
Israel-based Fibrotex USA, a supplier of next-generation military tent systems for the U.S. Department of Defense, allied international governments and private industry, opened its new vertical manufacturing facility, established through a partnership with Outdoor Venture Corp. and expected to create up to 350 full-time jobs via a $12.1 million investment in Sterns, Kentucky.

Fibrotex USA was awarded a 10-year, $480 million contract to supply Ultra-Lightweight Camouflage Net Systems (ULCANS) to the US Army. As a strategic subcontractor, OVC assisted Fibrotex USA in establishing a new manufacturing location in Stearns.

Leaders at the companies project creating 150 jobs at the new Fibrotex facility to manufacture material used in ULCAN and additional signature management technologies moving forward. The investment includes accommodation for a 200-job expansion at OVC’s McCreary County operation. The ULCANS is a modular camouflage system used to conceal military equipment, facilities, troops and other assets in a wide variety of environments.

“Today more than ever, our troops are facing a near-peer enemy with capabilities that did not exist nor were in play for the last two decades,” said Eyal Malleron, CEO of Fibrotex USA. “This new threat requires us to re-adopt and relearn camouflage, concealment and deception doctrines more than ever. We are excited provide this exact solution to the US Army via the ULCANS with the strategic assistance of OVC and the extraordinary workforce in Kentucky."

“This is an important long-term partnership that we are building in McCreary County to supply products directly to the Army,” said JC Egnew, president and CEO of OVC. “I anticipate this friendship will far exceed the next decade.”

“This exciting project will create substantial new economic opportunity in Southeast Kentucky, while also providing crucial, high-tech products for our nation’s armed forces,” Governor Matt Bevin said. “Outdoor Venture Corporation has been an integral part of McCreary County’s industrial sector for more than 35 years, and it is great to see the company bring another great business to the region. We thank both OVC and Fibrotex USA for the vital work they do, and for their commitment to utilizing Kentucky’s strong workforce to accomplish their mission.”

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in December 2018 approved OVC for up to $200,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA) based on a $12.1 million investment. 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.

In addition, OVC can receive resources from the Kentucky Skills Network.

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