South Korea-based DAE-IL Chooses Murray, Kentucky, for Manufacturing Plant
DAE-IL Corp. will construct a 295,000-square-foot facility in the Murray West Industrial Park. The Murray location, which will operate under the name DAE-IL USA, will produce gears for the automotive industry. Construction is expected to begin this month and be completed by the end of 2018.
“DAE-IL USA is very excited for our first manufacturing operation to be in Murray,” said DAE-IL Corp. President Jung Ryol (Johnny) Kim. “Of all the locations that we considered, all of our needs were met and exceeded by this community. We believe we can be successful there and we look forward to being part of the community.”
Founded in 1976 and headquartered in Ulsan, South Korea, DAE-IL Corp. manufactures and sells powertrain parts for automotive, heavy equipment and motorcycles. Its products include gears, car transmission and engine parts, heavy equipment products, such as trans axles, drive axles and transmission and excavator products, and motorcycle transmission and engine products. The company’s primary export markets include the US, China, Europe and Japan.
“We are excited to welcome DAE-IL Corp. to Kentucky,” Governor Matt Bevin said. “We are grateful that they chose the commonwealth for their first ever manufacturing operation in the United States. DAE-IL USA will be an excellent addition to our automotive industry and a perfect fit for the dedicated workforce in Calloway County. We look forward to the opening of the new facility and strong growth in Kentucky for years to come.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives up to $3 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.
Additionally, KEDFA approved DAE-IL Corp. for up to $500,000 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. DAE-IL also can receive resources from the Kentucky Skills Network.
Calloway County Judge-Executive Larry Elkins said, “We need jobs that will raise the bar in terms of pay and technical skills, so that people can have a living wage and take care of their families. Having seen the products DAE-IL makes, as well as meeting with the CEO of their company, I am convinced that they will both be a good fit for our community, as well as the potential to grow far beyond the initial jobs projection of 120. A number of these jobs will also involve engineering, office support and other front office opportunities that will help keep more graduates here in the community. While there are still a lot of details to work out, we appreciate the Cabinet approving their initial incentive package and will do our part to make this work.”
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