KY: Zotefoams to Invest $22M, Breaks Ground on N. KY HQ, Hiring 25
9 Apr, 2015
Governor Steve Beshear joined company officials and local leaders to break ground on Zotefoams Inc.’s expansion in Walton.
Zotefoams, a world leader in cross-linked block foams, is expected to invest nearly $22 million to expand its manufacturing capabilities at the company’s North American headquarters and create 25 new, local jobs.
“Kentucky welcomes Zotefoams Inc.’s growth and success in northern Kentucky,” Gov. Beshear said. “We’re extremely pleased that a company of Zotefoams’ worldwide influence would choose to expand operations in the Commonwealth, which is another testament to Kentucky being the ideal place for companies to do business.”
Zotefoams Inc. is a subsidiary of United Kingdom-based Zotefoams plc. For more than 30 years, Zotefoams plc imported its finished products to North America. In the late 1990s, the company opened Zotefoams Inc. in Walton. Zotefoams began to import partially processed raw materials from the U.K. and perform the final manufacturing in northern Kentucky.
This new investment will allow the Walton facility to become a full-process site. The move, which includes adding 53,000 square feet to Zotefoams Inc.’s existing facility on Precision Drive, is expected to help the company be more competitive in the U.S., better serve its existing customer base and significantly increase its global capacity.
"Northern Kentucky Tri-ED and the Kentucky Cabinet for Economic Development helped tip the decision for our global capacity investment towards Walton versus the alternatives explored,” said Dan B. Catalano, president of North America, Zotefoams Inc. “The cohesive, concerted effort and genuine interest in us and our business, coupled with the support and incentives, sent a powerful message to our board of directors of Zotefoams plc.”
Zotefoams’ cross-linked block foams are used in a wide range of markets, including sports and leisure, packaging, transport, health care, toys, building, marine and the military. Through a unique production process, the company produces foams that have controlled properties and are of a strength, consistency, quality and purity superior to foams produced by other methods.
The company first announced the expansion last fall, several months after Gov. Beshear met with company officials during the Kentucky Export Initiative Trade Mission to the U.K.
Zotefoams Inc.’s expansion adds to the state’s success in attracting foreign direct investment. Kentucky is home to more than 430 internationally based companies. So far this year, foreign-owned companies have announced more than $214 million in new investment in the Commonwealth.
“Zotefoams’ expansion and continued investment in Walton is great news for our northern Kentucky community and highlights the diverse nature of Kentucky’s global economy,” said Sen. Damon Thayer, of Georgetown.
“Zotefoams’ expansion in northern Kentucky signifies that our region has a strong workforce and is an ideal location for international companies to do business,” said Rep. Sal Santoro, of Florence. “I thank Zotefoams’ leadership for being a part of our community and for investing in Walton.”
“We’re thrilled that Zotefoams is expanding its facility and adding jobs in Walton,” said Northern Kentucky Tri-ED Chairman and Kenton County Judge-Executive Kris Knochelmann. “This project helps demonstrate the effectiveness of NKY Boost, Tri-ED’s business retention and expansion program, and our efforts to facilitate the success of our existing industries in northern Kentucky.”
To encourage the investment and job growth in northern Kentucky, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives up to $600,000 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 the company for tax benefits up to $100,000 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.
For more information on Zotefoams, visit www.zotefoams.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.
A detailed community profile for northern Kentucky can be viewed here.
For more information about Northern Kentucky Tri-ED, visit www.NorthernKentuckyusa.com. Northern Kentucky Tri-ED can also be followed through social media channels via Facebook, LinkedIn, Twitter and YouTube.