Swedish Match Plans $3 Million To Expand Its Owensboro, Kentucky, Operations Center
With its 10,000-square-foot expansion, Stockholm-based Swedish Match, a manufacturer of tobacco products, will grow its R&D department by eight employees. The addition will increase the company’s capabilities to formulate new products in Daviess County. The project includes laboratories, offices and meeting spaces. The company expects to complete the project in May and open the enlarged department in early June.
“Swedish Match, for many years, has been dedicated to innovation,” said Thord Hassler, Vice President of Swedish Match research and development. “An enhancement project, completed at the R&D center in Sweden three years ago, has proven to be a worthwhile investment. The company is now following up with a similar investment in our U.S. R&D facility. Swedish Match is exceptionally well-positioned to capitalize on both of these investments by being a premier supplier of snus products in Europe and a key supplier of similar moist snuff products in the U.S. marketplace.”
“Swedish Match recognizes Kentucky as a prime location for investment, a message we’ve been trumpeting at home and internationally,” said Governor Steve Beshear. “Projects like this represent a vote of confidence in the breadth and quality of Kentucky’s workforce and that our state is a great location for business and foreign direct investment.”
Rep. Tommy Thompson, of Philpot said, “This additional research and development will allow the company to focus on expanding its product line and potentially invest even more locally. I’m glad to see this valued company make this move and solidify its commitment to our economy.”
To encourage the investment in the community, the Kentucky Economic Development Finance Authority preliminarily approved the company for $100,000 in tax incentives through the Kentucky Enterprise Initiative Act. 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 equipment.
In addition, Swedish Match is eligible to receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies are eligible to receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. Last year, the Kentucky Skills Network trained more than 84,000 employees from more than 5,600 Kentucky companies.
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