Harbor Steel & Supply Builds Bowling Green, Kentucky, Manufacturing Plant
The company plans to build a 50,000-square-foot facility in the Kentucky Transpark. The investment will include the purchase of laser machines, press brakes for forming and automated saws, among other equipment. Construction is expected to begin in spring 2022 and be completed by the third quarter of next year. The operation will support overflow from Harbor Steel’s Lexington facility and position the company to grow its customer base and service area.
“All of us are very excited about locating our new facility in Bowling Green! We believe the location and infrastructure in the region gives us tremendous opportunity for sustainable growth,” said Michael Weis, president of Harbor Steel. “We look forward to expanding our service area in Kentucky while growing our processing capabilities.”
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) today preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $500,000 in tax incentives based on the company’s investment of $8 million and annual targets of creation and maintenance of 25 Kentucky-resident, full-time jobs across 10 years, and paying an average hourly wage of $30 including benefits across those jobs.
Additionally, KEDFA approved Harbor Steel for up to $100,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). 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. 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, Harbor can receive resources from the Kentucky Skills Network.
“Harbor Steel & Supply has been a quality Kentucky employer for the past 30 years, and I am thrilled to see the company grow its presence in our state,” Governor Andy Beshear said. “This project reflects Kentucky’s strength in the metals industry, and it continues the unparalleled economic momentum our state has seen in recent months. I wish the company well as it establishes its second Kentucky facility and hope to see even more growth in the future.”
Founded in 1952 and based in Muskegon, Michigan, Harbor Steel distributes and manufactures fabricated steel products, specializing in processed sheet and plate for a variety of markets. The company’s services include sheet and tube laser cutting, plasma cutting, flame cutting, saw cutting, forming and machining of hot-rolled and cold-rolled aluminum and stainless steel. Aside from its Kentucky presence, the company operates in Michigan, Indiana, Ohio and West Virginia.
“We are excited to celebrate the groundbreaking of Harbor Steel’s new facility here in Bowling Green,” said Ron Bunch, president and CEO of the Bowling Green Area Chamber of Commerce. “They will be exemplary members of our business community. Their growth is no surprise, and we look forward to their future in our community.”
The new Harbor Steel operation will add to the state’s 230-plus metals-related facilities that employ approximately 25,000 Kentuckians. In 2021 alone, Kentucky’s metals industry has spurred approximately $920 million in planned investment and roughly 1,600 expected new jobs for Kentucky residents.
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