KY: Governor Beshear Announces Expansion of Simba USA in Morehead
11 Apr, 2011
Company consolidates Mexico operations to Morehead, creates 20 new jobs
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Gov. Steve Beshear recently joined community leaders and officials of Simba USA in Morehead to announce the company will expand its Morehead operations, creating 20 new jobs and a $2.25 million investment. The company is closing a similar facility in Mexico, moving its entire operations and expanding into the Morehead-Rowan County Industrial Development Authority’s facility located in the John Will Stacy – Menifee-Morgan-Rowan County (MMRC) Regional Business Park.
“The expansion of Simba USA is great news for the Morehead community and the Commonwealth,” said Gov. Beshear. “This multi-million dollar investment means this company will not only maintain its existing 18 employees, but will add 20 new jobs and provide a significant boost to the local economy. We’re proud that Simba USA chose to reaffirm its commitment to Kentucky and make MMRC, Morehead and Rowan County the focus of its future growth.”
CMC Golf acquired Simba USA Australia, in 2008, and has become a leading manufacturer and supplier of specialty towels and accessories to the golf, military and related industrial markets. This expansion will include the manufacture of jacquard towels and many additional enhancements of various products at its 25,000 square-foot facility.
“I am very excited to announce that two years after the opening of our facility in Morehead, Kentucky we are expanding our manufacturing operation here,” said Garret Weyand, president & CEO of Simba USA. “Through hard work, our team here in Kentucky has proven their dedication and loyalty to produce the highest quality of products. This expansion would not be possible without support of the Commonwealth of Kentucky, Rowan County Fiscal Court, Morehead- Rowan County Economic Development Council and Industrial Development Authorities. We look forward to our continued partnership with local and state officials that will continue to benefit Simba USA, Kentucky and region served by MMRC.”
The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved Simba USA for tax incentives up to $800,000 through the Kentucky Business Investment program. The performance-based incentive allows the company to keep a portion of its investment over a 10-year period through corporate income tax credits and wage assessments by meeting job and investment targets. KEDFA also approved a low-interest loan to Simba USA to help finance the project.
Additionally, the Department for Local Government approved a $380,000 Community Development Block Grant to the Morehead-Rowan County Economic Development Council for the benefit of Simba USA. The funds will be used to purchase two full loom packages, including looms, harnesses, jacquards, spare beams and a dust collection system. These looms will be in addition to the five looms that will be moved from Mexico to Morehead.
“This is exciting news for Rowan County and the region,” said Sen. Walter Blevins, of Morehead. “Simba USA has been a good corporate friend to our area and this investment will create 20 new, much needed jobs. This is a welcome opportunity for our workforce and a boost to our economy. I appreciate the Governor’s efforts in helping create these opportunities.”
“This is an outstanding measure of economic recovery in Kentucky, and especially Rowan County,” said House Majority Leader Rocky Adkins, of Sandy Hook. ”The expansion of jobs and investment in Simba's manufacturing plant are evidence of the quality workforce we have in Rowan County and the MMRC region. Simba USA closing its facility in Mexico and moving its operations to Rowan County are proof of our region's commitment to economic growth, job creation and continued development efforts which are paying off with exciting announcements like this.”
“This is great news for Rowan, Menifee and Morgan counties, the partners in the regional industrial park, and will give us a much-needed economic boost,” said Rep. John Will Stacy, of West Liberty. “I want to thank Simba USA for moving forward with this investment, it will mean so much to the region and future employees due to the new jobs that will be created.”
“Rowan County is honored to have Simba USA located in our regional MMRC Business Park and this expansion couldn’t come at a better time,” said Rowan County Judge Executive Jim Nickell. “The 20 new jobs with good wages for the people in our area will circulate dollars locally with regional benefits immeasurable. The closing of its Mexico operation, moving to Kentucky with this expansion shows a tremendous commitment and faith by Simba USA in Rowan County but also the strength of our county’s workforce and quality of products manufactured locally.”
“On behalf of the city of Morehead and its citizens, I am very pleased to welcome the expansion of operations at Simba USA at its MMRC manufacturing facility,” said Morehead Mayor David Perkins. “It is very exciting that Simba’s parent company, CMC Golf, the world’s number one supplier of golf industry accessories considers the MMRC facility to be a key part of their strategy. The additional jobs and anticipated growth at Simba is a very positive thing for Morehead and Rowan County.”
Information on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com.
About the Kentucky Cabinet for Economic Development
The Kentucky Cabinet for Economic Development is the primary state agency in Kentucky responsible for creating new jobs and new investment in the state. New business investment in Kentucky in 2009 totaled nearly $ 977 million with the creation of more than 6,600 new jobs. Information on available development sites, workforce training, incentive programs, community profiles, small business development and other resources is available at www.ThinkKentucky.com.