Company has operated in Mason County for nearly 20 years
FRANKFORT, Ky. (July 25, 2024) – Today, Gov. Andy Beshear announced that Mitsubishi Electric US (MEUS) will repurpose an existing manufacturing facility in Maysville to produce highly efficient heat pump compressors, which will bring 122 new full-time jobs with a $143.5 million investment.
The Cabinet for Economic Development believes this is the largest project in Mason County in 20 years.
“I had the privilege of meeting with Mitsubishi Electric’s leadership during last week’s economic development visit to Japan to discuss our longstanding partnership and how we can continue to grow together. We also discussed the unique opportunity presented by this project, and it is incredible news for the company and for the commonwealth,” said Gov. Beshear. “The establishment of this facility positions Mitsubishi Electric, a leader in all-climate heat pump systems, to take its business to the next level and emphasizes the importance of investing in companies that are committed to U.S. manufacturing. I want to congratulate the company’s leadership on their decision to reinvest in Kentucky.”
As the second-largest employer in Maysville, Mitsubishi Electric has produced automotive components in Kentucky since 1995, in tandem with a long history of training Maysville’s next generation of workers through collaborations with Morehead State University and the Maysville Community and Technical College, among others. As the automotive landscape has diversified beyond the internal combustion engine, Mitsubishi Electric has worked diligently to identify a viable alternative for this manufacturing facility and maintain its commitment to Maysville.
MEUS plans to establish the first-ever U.S. factory to build advanced twin-rotary variable capacity compressors, the key technology used in Mitsubishi Electric Trane HVAC US (METUS) highly efficient heat pump systems. A significant majority of these types of compressors are currently built in Asia.
METUS heat pumps offer precise temperature control, excel in cold climate conditions and operate efficiently to reduce carbon emissions associated with the heating of residential and commercial buildings. As the first of its kind in the United States, this investment will help grow domestic heat pump production capability necessary to meet the anticipated increased demand for these products. Further investments in renovations and facility modernizations will help reduce building emissions, improve energy efficiency and lessen environmental impact, consistent with Mitsubishi Electric’s goal of making all of its factories net-zero by 2030.
The U.S. Department of Energy (DOE) in November 2023 announced $169 million in funding for nine projects to accelerate U.S. heat pump manufacturing capability at 15 sites across the country. This project was selected by the DOE for a $50 million grant, which is pending final approval.
“Mitsubishi Electric is grateful to the Commonwealth of Kentucky for providing incentives to ensure we maintain our manufacturing presence in the Bluegrass State,” said Mike Corbo, president and CEO of Mitsubishi Electric US. “Creating technologies that support vibrant and sustainable societies is at our company’s core. This repurposed facility brings the production of compressors for our highly efficient heat pump systems here to the U.S., and with that new jobs and investments in technology that make American homes more comfortable, more sustainable and less expensive to heat and cool. This collaboration is a huge step toward many of our shared goals.”
MEUS, working with its joint venture METUS, its parent Mitsubishi Electric Corporation and affiliates (collectively, Mitsubishi Electric), is a leading designer, manufacturer and seller of advanced heat pump systems and sophisticated compressors used in residential and commercial settings around the world.
Mason County Judge/Executive Owen McNeill mentioned the work that went into securing this project: “Today’s announcement not only represents the culmination of an 18-month project supported by all levels of federal, state and local government, but also secures the next chapter for Maysville’s Mitsubishi Electric facility, ensuring this world-class Maysville workforce continues to thrive. Transitioning from a legacy Tier 1 automotive manufacturer to the United States’ preeminent highly efficient heat pump compressor manufacturer not only gives Maysville and Kentucky a huge highlight in this growing green energy technology but underscores the incredible and diverse talent these jobs and our workforce represents. I want to thank DOE Secretary Granholm, Governor Beshear and our team at Mitsubishi Electric, for their innovative thinking that has culminated in this investment.”
Maysville Mayor Debra Cotterill thanked the organizations that had a hand in the announcement: “Today’s announcement highlights the positive momentum we’re building in Maysville, Mason County and our region with high-paying, highly skilled technology jobs that will provide careers well into the future. I appreciate Mitsubishi Electric, the Beshear administration and our local economic development team for their efforts.”
Maysville-Mason County Industrial Development Authority Director Tyler McHugh congratulated MEUS on the announcement: “The Maysville-Mason County Industrial Development Authority (MMCIDA) would like to congratulate Mitsubishi Electric on the launch of their exciting new venture. Mitsubishi Electric has been a model for innovation for decades; now we look forward to seeing that continued innovation manifested right here in Maysville, Kentucky. Mitsubishi Electric and MMCIDA have been community partners for more than 20 years, and we look forward to continuing our growth together.”
Mitsubishi Electric’s investment and job generation build on the best four-year period for economic growth in state history.
Since the beginning of his administration, Gov. Beshear has announced more than 1,000 private-sector new-location and expansion projects totaling nearly $32 billion in announced investments, creating nearly 55,000 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth’s history.
The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 and 2023 topped $26 in consecutive years for the first time.
Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky as the electric vehicle battery production capital of the United States: Ford Motor Co. and SK On’s transformative $5.8 billion, 5,000-job BlueOval SK Battery Park in Hardin County; AESC’s $2 billion, 2,000-job gigafactory project in Warren County; Toyota’s $1.3 billion investment in Scott County; and INFAC North America’s $53 million investment in Taylor County, among others.
The Governor’s administration also secured the largest General Fund budget surplus and Rainy Day Fund, as well as the most jobs filled in state history. Last year, Kentucky set the record for the longest period with the lowest unemployment rates in state history.
Kentucky also secured rating increases from major credit rating agencies Fitch Ratings and S&P Global Ratings, and Moody’s Investors Service upgraded Kentucky’s credit outlook from stable to positive.
In March, Site Selection magazine ranked Kentucky third nationally and first in the South Central region for economic development projects per capita in its 2023 Governor’s Cup rankings. In April, Site Selection placed Kentucky second in the South Central region and in the top 10 nationally in its 2024 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.
Gov. Beshear announced a “Supply Kentucky” initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) today preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $7 million in tax incentives based on the company’s investment of $143.5 million and annual targets of:
- Creation and maintenance of 122 Kentucky-resident, full-time jobs across 15 years; and
- Paying an average hourly wage of $53.32 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.
In addition, Mitsubishi Electric can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
For more information on Mitsubishi Electric US, visit US.MitsubishiElectric.com.
A detailed community profile for Mason County can be viewed here.
Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.
###