Wednesday, 09 25, 2013
Specialty chemical company to invest more than $108 million in the Commonwealth
FRANKFORT, Ky. – Governor Steve Beshear today announced Lubrizol Advanced Materials Inc., a subsidiary of The Lubrizol Corporation, plans to expand operations in Louisville, creating 25 jobs and investing more than $108 million in the project.
“Lubrizol’s $108 million investment and 25 new jobs in Louisville show the company’s commitment to achieving business success here in the Commonwealth,” said Gov. Beshear. “For a company with locations all over the world, this expansion shows that Lubrizol values our state, our strategic location and our top quality workforce.”
Founded in 1928, Lubrizol has approximately 7,000 employees worldwide. The company owns and operates manufacturing facilities in 17 countries, as well as sales and technical offices around the world.
Lubrizol, a Berkshire Hathaway company, is a technology-driven global company that combines complex, specialty chemicals to optimize the quality, performance and value of customers’ products while reducing their environmental impact. It produces and supplies technologies to customers in the global transportation, industrial and consumer markets.
The company’s technologies include lubricant additives for engine oils, driveline and other transportation-related fluids, and industrial lubricants, as well as additives for gasoline and diesel fuel. Lubrizol also makes ingredients and additives for home care and personal care products and pharmaceuticals, as well as specialty materials, including plastics technology and performance coatings in the form of specialty resins and additives.
To meet increasing global demand, the Louisville expansion will include the construction of a new chlorinated polyvinyl chloride resin and compounding facility at the company’s current Bells Lane location, which currently employs about 140 people.
“Lubrizol is committed to ensuring product availability and quality for our global CPVC customers,” said Sam Striegel, plant manager. “Our Louisville expansion, combined with our other CPVC expansion efforts, will further position us to meet global demand as well as better serve the needs of our existing and future customers to help them achieve their business success.”
To encourage the investment and job growth in Louisville the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives up to $480,000 through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.
KEDFA also approved Lubrizol for tax benefits up to $740,000 through the Kentucky Enterprise Initiative Act, which allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing equipment.
“I am very pleased that Lubrizol has made this additional investment in Louisville and created even more new jobs,” said Sen. Gerald A. Neal, of Louisville. “This speaks highly of our workforce. Our area will continue to reap the rewards of economic growth and additional job opportunities that come with the investment.”
“This sizeable investment is great news for our community, especially for those families who now have greater job security or will benefit from being hired,” said Rep. Reginald Meeks, of Louisville. “I want to thank Lubrizol for taking this step, and I appreciate the work our local and state officials have done to help make this possible.”
“Lubrizol’s expansion, which includes a $108 million investment and 25 new jobs, demonstrates Louisville’s willingness and capacity for meeting the needs of vibrant and growing companies,” said Louisville Mayor Greg Fischer. “This illustrates the success we can all share as a result of a healthy local and regional economy.”
“Lubrizol’s exciting expansion news is further evidence of why Forbes recently recognized Louisville as a manufacturing boom town,” said Greater Louisville Inc. President and CEO Craig Richard. “Already a powerhouse in Louisville’s burgeoning advanced manufacturing sector, Lubrizol’s selection of Louisville for expansion is a real testament to our community resources and our strong talent pool.”
For more information on Lubrizol, visit www.lubrizol.com.
Information on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com. Fans of the Cabinet for Economic Development can also join the discussion on Facebook or follow on Twitter. Watch the Cabinet’s “This is My Kentucky” video on YouTube.
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