Flottweg Separation Technology Inc. company representatives and state and local officials to celebrate the groundbreaking of the liquid-solid separation equipment manufacturer’s new warehouse facility in Boone County, a $1.75 million investment that will create 12 high-wage jobs.
“It is an incredibly exciting time to be doing business in Kentucky, and it is even more exciting to see companies continue to grow and provide quality job opportunities to our workforce throughout the state,” Gov. Andy Beshear said. “I am thrilled to congratulate Flottweg on the next step of their journey here in the commonwealth and I want to thank the company’s leadership and everyone who made today possible. Flottweg has established itself in this community over the past 15-plus years, and I look forward to seeing their success long into the future.”
The expansion – the company’s fourth since 2011 – comes in response to rising demand and will accommodate increased parts manufacturing. This investment in Flottweg’s Northern Kentucky operation, which assembles and repairs machinery for the company’s existing customer base, will support construction of a new 15,000-square-foot warehouse facility on Flottweg’s existing campus on Toebben Drive, expected to be completed by Q1 2023.
“This expansion is another step in our continued growth,” said Flottweg President Dan Ellis. “It means more jobs and better support for our customers. Today’s celebration shows that we are solidifying our presence in Northern Kentucky.”
Established in 2006, Flottweg Separation Technology is a subsidiary of Flottweg SE, which was founded in Germany in 1932. Flottweg SE has grown into a global technology leader producing centrifuges, belt presses and separators used for liquid-solid separation. The company’s products support a range of industries, including the mining, petrochemical, chemical, pharmaceutical, food and beverage and machining sectors. Its products also have environmental uses, including treatment of wastewater or oil sludge.
Flottweg’s investment adds to Kentucky’s growing manufacturing presence, which includes nearly 5,000 facilities that employ approximately 250,000 people across the state. In 2021, manufacturers contributed to 13,900 new jobs in the commonwealth with $10.5 billion in new investments.
Boone County Judge/Executive Gary Moore congratulated Flottweg’s leaders on the start of construction of the new facility.
“Flottweg’s growth and success in Northern Kentucky is impressive,” said Judge Moore. “On behalf of the community, we appreciate their investment and increase in employment in Boone County.”
Northern Kentucky Tri-ED CEO Lee Crume applauded Flottweg’s leaders for the decision to invest in their U.S. manufacturing operations.
“We had the opportunity to visit Flottweg’s headquarters in Germany in June and thanked the leadership team for their commitment to growth in the United States,” added Crume. “As global companies evaluate their supply chain and operations, it’s encouraging to see new investment from FDI companies, like Flottweg, in Northern Kentucky.”
Flottweg’s investment and planned job creation furthers recent economic momentum in the commonwealth, as the state builds back stronger from the effects of the pandemic.
The state’s economic momentum has carried strongly into 2022, with both S&P Global Ratings and Fitch Ratings upgrading Kentucky’s financial outlook to positive in recognition of the Commonwealth’s surging economy.
In July, the Governor reported the highest annual growth rate in 31 years. And for the second year in a row, Kentucky’s General Fund budget surplus has exceeded $1 billion. Also in July, Gov. Beshear reported that the state’s Rainy Day fund is up to a record balance of $2.7 billion, significantly higher than the $129 million balance the fund had when the Governor took office.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in March 2022 preliminarily approved an incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide tax incentives based on the company’s investment and annual job-creation and wage targets.
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, the company 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.