Canada-based Martinrea Hopkinsville Expands Hopkinsville, Kentucky, Operations
The company will expand the more than 400,000-square-foot facility in Hopkinsville’s Commerce Industrial Park by 38,500 square feet to support its growing business with added production of lightweight, high-strength structural steel products for internal combustion engine and battery electric vehicles.
“We are proud to have built a strong partnership with the state of Kentucky and the local community to create opportunities for our employees and continue to build the automotive market in Hopkinsville,” said Pat D’Eramo, president and CEO of Martinrea International. “We are excited to have chosen Christian County as our home to expand operations, build quality products and increase services subsidiary for our customers.”
The Hopkinsville facility produces front and rear suspension subframes, transmission cross-members, upper control arms, lower control arm rockers, plenums and body-in-white parts for automakers such as Ford, General Motors, Volkswagen, BMW and Nissan. The location has produced automotive parts since 1999 and has been operated by Martinrea since 2006.
“Kentucky’s automotive industry continues to grow and evolve, and that is also the case for Martinrea Hopkinsville, which is creating more than two dozen great jobs for residents in Southwestern Kentucky,” Governor Andy Beshear said. “This project positions the company to better serve traditional automotive manufacturers, as well as the burgeoning electric-vehicle market. I want to thank Martinrea’s leaders for bringing this expansion to the commonwealth and look forward to watching the company continue to grow.”
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $750,000 in tax incentives based on the company’s investment of $31.17 million and annual targets of creation and maintenance of 33 Kentucky-resident, full-time jobs across 15 years and paying an average hourly wage of $28 including benefits across those jobs.
Additionally, KEDFA approved Martinrea 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.
“This project represents a true partnership as our local leaders worked closely with Martinrea-Hopkinsville plant manager Brad Graves, the Cabinet for Economic Development, TVA and our local utility partners to earn the business for our region,” said Carter Hendricks, executive director of the South Western Kentucky Economic Development Council. “Thanks to Brad and his team, the SWK region will reap the benefits of this expansion as well as Martinrea’s continued commitment to the community. Equally important, this announcement marks the fourth new or existing industry expansion announcement in the last 10 months for Hopkinsville and Christian County, validating the region’s reputation as a great place to grow a business.”
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, Martinrea can receive resources from the Kentucky Skills Network.
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