Rajant Corp., the provider of Kinetic Mesh wireless networks, plans a $2 million relocation and expansion to MMRC Industrial Park in Rowan County, Kentucky. The project is expected to create 26 full-time jobs.
The company, which opened its Rowan County operation five years ago, plans to move from its current 9,600-square-foot facility on Main Street in Morehead to a nearby 48,000-square-foot spec building located on nearly 15 acres in the MMRC Industrial Park.
The expansion will assist in the company’s effort to extend the production of products and services with further capabilities, including artificial intelligence (AI), while also improving its commercial and military product lines. The company currently employs 24 people in Morehead, including designers, engineers, service technicians and assemblers, many of whom graduated from Morehead State University’s Space Engineering Program.
“Rajant was originally attracted to Kentucky due to aerospace advances and more specifically to the Morehead State University Space Science Center, which was brought to our attention by U.S. Congressman Hal Rogers. Rajant’s five-year experience of excellence with the university and within the Morehead business community warrants expansion,” said Robert Schena, Rajant co-founder and CEO.
“The opportunity to increase our manufacturing footprint in Rowan County and hire more local talent is a testament to the resources Kentucky has to offer. The region’s workforce is exceptional for its integrity, drive and enthusiasm. For Rajant’s purposes, we are fortifying continued technology innovations with engineering graduates from Morehead State University and hiring other support personnel to increase the production of goods and services for our global customers. Our investment to build a facility here will not only serve our manufacturing growth, but it will keep Kentucky residents at home with their families and neighbors.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on May 28 preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $300,000 in tax incentives based on the company’s investment of $2 million and annual targets of, creation and maintenance of 26 Kentucky-resident, full-time jobs across 15 years and paying an average hourly wage of $25 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 Rajant for up to $50,000 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. In addition, Rajant can receive resources from the Kentucky Skills Network.
“It’s great to see innovative companies growing and reinvesting in the commonwealth creating more good-paying jobs for Kentuckians,” Governor Andy Beshear said. “Our strong higher education system, with many specialized programs that prepare Kentuckians to work in key industries, helps attract new jobs and foster continued investment. It’s imperative that we continue to attract and grow higher-skill, well-paying careers for Kentuckians while providing the means to educate and train for those positions.”
Bob Helton, executive director of the Morehead Rowan County Economic Development Council, said officials will continue to look to attract high-tech jobs to the region.“The success of Rajant in Morehead reflects the strength of our skilled workforce and our community’s ability to support high-tech companies,” Helton said. “I can’t wait to see how the company continues to grow in the future.”