Joint event in Carroll County celebrates a longstanding industrial relationship now extending to Kentucky
Contact: Woody Maglinger
FRANKFORT, Ky. (Sept. 29, 2017) – During a joint ceremony in Carroll County today, Gov. Matt Bevin congratulated two industrial manufacturers – Dow for achieving a half-century of operations at its Carrollton site, and Cabot Corp. for starting construction on a 32-job plant, its first in Kentucky.
“The longstanding commitment by Dow to its Carrollton site has brought employment and a better quality of life for generations locally,” Gov. Bevin said. “Leaders of both Dow and Cabot know this co-location model creates great efficiency and we are confident they have the resources to thrive in Kentucky’s much improved business climate. I am personally grateful to Dow for reaching its golden anniversary here in the commonwealth. We are delighted to welcome Cabot to Kentucky, where it can build a legacy to match Dow Corning’s 50 years of economic impact in the region.”
Cabot’s $89 million plant, expected to open in 2020, will manufacture fumed silica. Dow and Cabot have developed a cooperative relationship as both supplier and customer to each other. They currently operate neighboring plants in Michigan, and Wales, United Kingdom. Silicone products manufactured by Dow are used by Cabot as a building block for producing fumed silica, an ultra-fine, high-purity particle used as a performance additive in a broad range of applications. Dow, in turn, uses Cabot’s fumed silica in its silicone products as well as a by-product from Cabot’s production process in its operations.
Executives from both companies spoke at the event, which was attended by 100-plus city, county and state local officials, business leaders and community members. Cabot President and CEO Sean Keohane said the new plant strengthens the corporate relationship with Dow as well as the region’s economy.
“This is yet another example of our corporate strategy at play as we continue to invest and strengthen our core market capabilities,” said Keohane. “This is a great day for Cabot as we expand our presence in North America by building adjacent to our longtime partner Dow in Carrollton. As leaders in our respective industries with a shared commitment to manufacturing and safety, health and environmental excellence, co-location in Carrollton was a natural fit. We look forward to bolstering our partnership, the local economy and community with our new operation.”
Howard Ungerleider, chief financial officer of DowDuPont, said the two facilities will make positive impacts in Kentucky for years to come.
“For 50 years, Dow has been an employer, neighbor and corporate partner in the region. We are proud of how far the Carrollton site has come and excited to recommit to the site with the groundbreaking of the new Cabot plant,” Ungerleider said. “The plant will provide a long-term supply of high quality CAB-O-SIL® fumed silica and enable growth of Dow’s silicones products at both our Carrollton and Midland, Mich., facilities.”
For Dow, the event also highlights the plant’s 20 years in the OSHA Voluntary Protection Programs, a designation from Kentucky OSHA. The 450-employee facility, located on a 1,200 acre site, makes siloxanes – base silicon materials – used in manufacturing products for the electronics, personal care, construction and energy industries.
Construction for the Carrollton plant began in 1965 and the facility opened in 1967. The plant also houses Dow global dimethyl silicone research team, which works to improve manufacturing processes for silicon base products. The plant is undergoing a $9.5 million, 20-job expansion announced in June to add finishing lines and prepare property for the Cabot facility.
Dow, which also operates sister plants in Elizabethtown and Louisville, is a Michigan-based subsidiary of DowDuPont and the world’s largest supplier of silicone products.
Boston-based Cabot dates back more than 130 years and manufactures specialty chemicals and performance materials such as carbon black, fumed metal oxides, activated carbon, cesium formate drilling fluids, masterbatches and conductive compounds, aerogel, fine cesium chemicals, graphenes and inkjet colorants. Its fumed silica is used in a broad range of products, including adhesives, sealants, cosmetics, batteries, toners, silicone elastomers, coatings and pharmaceuticals.
Cabot serves the consumer products, environmental, infrastructure and transportation industries, and employs approximately 4,500 people worldwide.
Sen. Paul Hornback, of Shelbyville, noted the role Dow has played in the region over the past five decades.
“I would like to offer my heartfelt congratulations to Dow as the company celebrates 50 years in Carrollton while celebrating Cabot Corporation’s groundbreaking,” Sen. Hornback said. “Dow has been a great community partner, and I look forward to Cabot’s economic partnership with the region.”
Rep. Rick Rand, of Bedford, said today’s event is about celebrating the community’s past and embracing its future.
“I am proud to join with other state and local officials to recognize all that Dow has meant to us over the decades, and I am pleased to welcome Cabot Corporation as it moves toward becoming a major Dow supplier,” Rep. Rand said. “Today’s ceremony says a lot about our community’s rich past and what is shaping up to be an even brighter future for us economically. I want to thank both companies for their many contributions and look forward to working with them in the years ahead.”
Carroll County Judge-Executive Bobby Lee Westrick said Dow has been a significant corporate partner for the community and expressed gratitude for their latest investment.
“Carroll County is proud that Dow has been and continues to be a vital part of our growing and robust industrial economy,” Judge Westrick said. “Over the last 50 years, Dow Corning and now Dow Chemical have provided high-paying jobs, steady growth in employment levels, safe industrial practices and community investment. We also want to thank Dow Chemical for their efforts to bring new investment and job creation to our community through their relationship with Cabot Corp. Their investment will create additional high-paying jobs that benefit our community and the Kentucky I-71 Connected region.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in May preliminarily approved Cabot for tax incentives up to $750,000 through the Kentucky Business Investment (KBI) program. In June, KEDFA preliminarily approved Dow for up to $300,000 through KBI for its project. The performance-based incentives allow companies to keep a portion of their investments over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.
Additionally, KEDFA approved Cabot for up to $250,000 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.
The companies also can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. In fiscal year 2017, the Kentucky Skills Network provided training for more than 120,000 Kentuckians and 5,700 companies from a variety of industry sectors.
For more information on Cabot, visit www.CabotCorp.com.
For more information about DowDuPont, visit www.Dow-DuPont.com.
A detailed community profile for Carroll County can be viewed at http://bit.ly/CarrollCo.
Information on Kentucky’s economic development efforts and programs is available at 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.