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CROWN Cork & Seal USA Begins Construction on Bowling Green, Kentucky, Manufacturing Complex

03/02/2020
Crown Holdings Inc.’s subsidiary, CROWN Cork & Seal USA Inc., started construction on a 327,000 square-foot beverage-can manufacturing facility, costing nearly $150 million, at Kentucky Transpark in Bowling Green, Kentucky.

Crown executives plan to open in spring 2021, with plans to hire 126 associates in Warren County. Its subsidiary CROWN Cork & Seal USA Inc., will own and operate the advanced-manufacturing plant. The facility plant will initially manufacture 1.3 billion cans per year at a rate of 2,800 cans per minute.

Crown Holdings President and CEO Timothy J. Donahue said, “beverage can growth in North America is being driven by the growing proportion of new products being introduced in cans versus other packaging, as both customers and consumers recognize the inherent portability, durability and sustainability of the beverage can,” Donahue said. “This new facility demonstrates Crown’s commitment to support its customers in meeting this growing demand. I would like to thank Governor Beshear, state and local agencies and utilities for their support and responsiveness. We look forward to working with these Team Kentucky members throughout this exciting project and beyond.”

According to the Kentucky Cabinet for Economic Development, led by Governor Andy Beshear, Kentucky’s team of local and state economic development professionals, environmental permitting and utility partners met Crown’s requirements in record time following initial contact in mid-December. The rapid turnaround gave Crown confidence the company would meet its production-start goal. It also makes this the first project both initiated and announced during Governor Beshear’s administration.

“Crown’s new plant will provide great employment opportunities for Kentuckians that both pay well and provide an important range of benefits. These are the types of jobs that can support a family. In choosing build in Kentucky, Crown Holdings gains access to a variety of assets that will make this advanced-manufacturing facility a success for decades to come,” Governor Beshear said.

“With its first plant in Kentucky, Crown will have a skilled and ready workforce, a plentiful supply of beverage can stock, a location with quick access to key markets and a world-class logistics and distribution industry. Further, Kentucky’s higher education and workforce development resources will assure Crown can build a pipeline of well-trained employees, he added.

Rep. Michael Meredith, of Oakland, thanked Crown for its investment and job creation. “CROWN Cork & Seal USA is an innovative company that has a legacy of leading in the metal packaging product industry,” Rep. Meredith said. “I am grateful for its nearly $150 million investment into our community. This Investment will bring 126 more jobs to Kentucky creating more opportunities for our citizens.”

Bowling Green Mayor Bruce Wilkerson noted from the city, the company can ship to two-thirds of the US market in a day’s time. “The Kentucky Transpark is a great location for meeting logistics needs,” Mayor Wilkerson said. “We are confident in our ability to meet Crown’s deadline so that they can begin serving customers from their Bowling Green facility early next year.”

Ron Bunch, president and CEO of the Bowling Green Area Chamber of Commerce, said, “Our team understood that time was of the essence and quickly rose to the occasion, demonstrating to Crown executives that Bowling Green could deliver quickly on all aspects of the project and was able to meet their aggressive timeline,” added Bunch.

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a six-year incentive agreement with CROWN Cork & Seal USA under the Kentucky Business Investment program. The performance-based agreement can provide up to $3 million in tax incentives based on the company’s investment of $147.55 million and annual targets of; creation and maintenance of 126 Kentucky-resident, full-time jobs across six years and paying an average hourly wage of $31 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.

Additionally, KEDFA approved CROWN Cork & Seal USA for up to $1 million 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. In addition, Crown can receive resources from the Kentucky Skills Network.

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