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Gov. Matt Bevin joined Toyota executives and local officials in Georgetown to celebrate the opening of the company’s $80 million North American production engineering headquarters.
More than 600 engineers at the new facility connect the dots between Toyota’s vehicle design teams and its factory production lines. Known as the Production Engineering Manufacturing Center, the Georgetown facility will also help innovate and develop new technology for Toyota’s manufacturing plants across North America.
“Toyota’s impact on the Kentucky economy reaches every corner of the commonwealth, and this production engineering headquarters is just the latest example of the company’s dedication to our great state,” Gov. Bevin said.
“It is my goal to turn Kentucky into the center of engineering and manufacturing in the United States, and this is the type of project that proves that goal is attainable. I want to thank Toyota for its continued show of faith in Kentucky and our workforce, and I look forward to more announcements of this nature in the years ahead.”
The center and its state-of-the-art lab serves as the manufacturing nucleus for Toyota’s 14 North American plants. It became possible as Toyota began consolidating its North American headquarters to Texas. The company donated a portion of its previous engineering campus in Erlanger, Ky., for a new STEAM-based educational center to serve the Northern Kentucky/Greater Cincinnati region. In March, Gov. Bevin announced a $6.8 million Work Ready Skills Initiative grant to Boone County Schools to reconfigure Toyota’s office and engineering lab into a learning environment. The school is expected to be open in time for the 2019-2020 school year.
Now a core group of Toyota’s North American production engineers will work in Georgetown. By locating the new center next to Toyota Motor Manufacturing Kentucky Inc. (TMMK) – the company’s largest manufacturing plant globally – the engineering team can gain quick feedback on innovations in a production environment.
“Our production engineers are at the top of their game and help shape the future of Toyota,” said Jim Lentz, chief executive officer of Toyota Motor North America. “They push the limits every day on what’s possible in manufacturing to produce ever-better vehicles. And their hard work and commitment to quality shows in the products we build in our 14 plants across North America.”
During today’s event, production engineers showcased the TILT Lab, a space focused on problem solving and innovation, where engineers move ideas from the concept stage to prototypes using technology such as 3-D printers, virtual reality, welders, lasers and more. Advancements made in the TILT Lab will be used at facilities across North America to improve processes and solve challenges. The i-Road, a three-wheeled vehicle that is a hybrid of a car and a motorbike, was also on display during the event.
The unveiling of the engineering facility follows Toyota’s announcement in April of a $1.33 billion “Reborn” project that is reinvesting, refurbishing and updating the TMMK plant. A paint shop fitted with new equipment and technology also is part of the investment. Separately, Toyota in September announce it will invest an additional $121 million in TMMK to expand its 2.5 liter engine production capacity.
Sen. Damon Thayer, of Georgetown, said he’s intrigued to get a look at the new facility.
“I congratulate TMMK on this next step in the company’s multimillion dollar expansion here in Georgetown,” Sen. Thayer said. “TMMK has been a great economic and community partner for our region, and I look forward to the final completion of the engineering headquarters project.”
Rep. Mark Hart, of Falmouth, said working in tandem with companies like Toyota ensure continued growth.
“Toyota Motor Manufacturing Kentucky is the heart of Scott and surrounding counties, providing thousands of jobs and bringing unparalleled economic benefits to us all,” Rep. Hart said. “Their rapid expansion this year solidifies that Toyota is here to stay as long as we continue to provide a pro-growth environment where good companies like this can thrive.”
Georgetown Mayor Tom Prather expressed gratitude for Toyota’s continued commitment.
“We are so excited and pleased with the new on-site PEMC at Toyota in Georgetown and the continued reinvestment into the plant, the community, the region and the commonwealth,” Mayor Prather said.
Scott County Judge-Executive George Lusby noted the company’s history in the community.
“The new Toyota Production Engineering and Manufacturing Campus is another in a long line of quality investment on the part of great community partner Toyota Motor North America,” Judge-Executive Lusby said.
Gov. Matt Bevin congratulated local officials and executives from Logan Aluminum Inc. and its parent companies today on the opening of the aluminum plant’s phase I expansion in Logan County, as well as the groundbreaking of phase II of the project.
Together the expansions represent about $407.6 million in new investments, which are creating about 250 full-time jobs at the sprawling mill in southwest Kentucky.
“Logan Aluminum is a standard-bearer of growth and foresight in its industry, and we are grateful for its decision to expand in Kentucky,” said Gov. Bevin. “Logan Aluminum is no stranger to diversification, making large-scale investments to increase beverage-can sheet production, while simultaneously meeting an ever-increasing demand for automotive-grade aluminum sheet metal. Because of companies like Logan Aluminum, Kentucky is becoming recognized as the engineering and manufacturing center of excellence in America. We look forward to seeing how this company will continue benefitting the communities in and around Logan County.”
Officials today cut the ribbon on phase I of the expansion, a project originally announced in 2015. Logan Aluminum’s $240 million investment expanded the recycling/new ingot casting capabilities. A new 280,000-square-foot building will produce approximately 600 million pounds of cast ingot annually. The investment also increased capacities of its rolling mills, scalping and pre-heating operations. The company announced an additional $42.6 million investment would prepare the plant to manufacture thicker-gauge aluminum for other products including automotive sheet. The Phase I is creating approximately 190 jobs.
This past May, the company announced the project’s second phase, a $125 million, 65,000-square-foot cold rolling mill expected to create 60 full-time jobs. With the official start of construction underway today, the new mill will supplement existing cold rolling capacity by Spring 2019. The expansion will add capacity for both beverage can stock and heavier gauge rolled sheet for use in automotive body and structural panels.
“Almost two years ago to the day, we held our groundbreaking for the new DC4 Recycle Facility, and now we are here today for the ceremonial ribbon cutting of DC4, and for the groundbreaking of Logan’s new Cold Mill – CM4,” Logan Aluminum Plant Manger Ken Perdue said. “It’s an exciting time for aluminum and it’s a really exciting time for aluminum in Kentucky. It’s really happening here!”
Logan Aluminum began production in 1983 and is a joint venture between Tri-Arrows Aluminum Inc., headquartered in Louisville, and Novelis Inc., based in Atlanta. The facility accounts for about 45 percent of North American aluminum beverage can production.
Tri-Arrows is a subsidiary of Tri-Arrows Aluminum Holdings Inc. (TAAH). TAAH was established in 2011, and is 75 percent owned by UACJ Corp., 20 percent by Sumitomo Corp., three percent by Itochu Metals Corp. and two percent by Itochu Corp.
Novelis was founded in 2005 when it spun off Alcan Inc., a Canadian mining and aluminum manufacturer. Novelis was acquired by Indian company Hindalco Industries in 2007 and is now part of the Aditya Birla Group.
Sen. Whitney Westerfield, of Hopkinsville, praised Logan Aluminum’s dedication to excellence and their commitment to the commonwealth.
“I am excited to congratulate Logan Aluminum on the completion of the Phase I expansion,” said Sen. Westerfield. “As we celebrate the groundbreaking of Phase II, I want to thank the company for investing over $400 million into our region, creating over 200 new Kentucky jobs. I look forward to the final completion of this project as Logan Aluminum continues to celebrate its successes.”
Rep. Jason Petrie, of Elkton, noted the company’s long history of success and continuous growth.
“Logan Aluminum has been a pillar of the Russellville business community for 34 years,” said Rep. Petrie, who serves on the Economic Development and Workforce Investment Committee. “I congratulate Logan on their tremendous success with this exciting expansion and look forward to the nearly 250 jobs they are offering to the people of Logan County and surrounding communities.”
Logan County Judge-Executive Logan Chick expressed appreciation for Logan Aluminum’s continued investment and job creation in Logan County.
“Logan Aluminum is an outstanding corporate citizen, and we appreciate their faith and confidence in Logan County,” Judge-Executive Chick said.
Lewisburg Mayor Teddy Harper said the operation has a substantial impact on the community.
“Logan Aluminum’s continued growth and success means a great deal to Lewisburg,” Mayor Harper said. “Their world-class operation and employment helps the entire area.”
Russellville Mayor Mark Stratton said the region is fortunate to have Logan Aluminum providing employment opportunities.
“The presence of Logan Aluminum benefits Russellville and the rest of southcentral Kentucky,” Mayor Stratton said. “We are blessed to have a top-notch company of their quality in our community. We wish them continued success going forward.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives up to $5.2 million for phase I and $6.5 million for phase II through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.
Additionally, KEDFA approved Logan Aluminum for up to $1.8 million in tax incentives through the Kentucky Enterprise Initiative Act (KEIA) for phase I and up to $1.5 million for phase II. 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.
Logan Aluminum 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.
Unemployment rates fell in 102 Kentucky counties, stayed the same in five and rose in 13 counties between September 2016 and September 2017, according to the Kentucky Center for Education and Workforce Statistics (KCEWS), an agency of the Kentucky Education and Workforce Development Cabinet.
Oldham County recorded the lowest jobless rate in the Commonwealth at 3.1 percent. It was followed by Fayette and Shelby counties, 3.2 percent each; Campbell, Jessamine, Scott and Woodford counties, 3.3 percent each; and Boone, Kenton, Monroe and Spencer counties, 3.4 percent each.
Magoffin County recorded the state’s highest unemployment rate at 12.9 percent. It was followed by Leslie County, 10.7 percent; Harlan County, 8.6 percent; Elliott County, 8.3 percent, Letcher County, 8.1 percent; Jackson County, 7.8 percent; Fulton County, 7.7 percent; Carter and Clay counties, 7.6 percent each; and Breathitt and Wolfe counties, 7.5 percent each.
Kentucky’s county unemployment rates and employment levels are not seasonally adjusted because of small sample sizes. Employment statistics undergo sharp fluctuations due to seasonal events such as weather changes, harvests, holidays and school openings and closings. Seasonal adjustments eliminate these influences and make it easier to observe statistical trends. The comparable, unadjusted unemployment rate for the state was 4.3 percent for September 2017, and 4.1 percent for the nation.
Unemployment statistics are based on estimates and are compiled to measure trends rather than actually to count people working. Civilian labor force statistics include non-military workers and unemployed Kentuckians who are actively seeking work. They do not include unemployed Kentuckians who have not looked for employment within the past four weeks. The data should only be compared to the same month in previous years.
Gov. Matt Bevin today local and state leaders and executives and employees from CTI Clinical Trial and Consulting Services to open the company’s headquarters in Covington, a $36.4 million project creating up to 500 Kentucky-resident jobs.
“CTI’s leaders recognize the numerous benefits of growing their company in Kentucky, and we welcome them as partners in our state’s dynamic business community,” said Gov. Bevin. “The company’s presence is creating hundreds of well-paying jobs for Kentuckians and strengthening the commonwealth’s healthcare industry. I believe today’s event is only the beginning of good things to come. CTI will thrive in Covington, and the people of Northern Kentucky are grateful for the opportunities that this will create.”
CTI, a global, privately held company providing therapeutic expertise to the pharmaceutical and biotechnology industries, relocated its headquarters from the Cincinnati suburb of Blue Ash, Ohio to be closer to the region’s urban center. The company is leasing approximately 125,000 square feet in the RiverCenter building. The relocation will help the company consolidate its locations and facilitate future growth.
“We felt strongly that we needed to move to a more urban setting in order to continue to recruit and retain the best people for our team that works tirelessly to bring life-changing therapies to critically ill patients around the world,” said Timothy Schroeder, founder and CEO of CTI. “Covington offered us the best of both worlds, a great community with an urban, walkable environment.”
Founded in 1999, CTI is a global leader in clinical research, working with pharmaceutical and biotechnology companies to plan, manage and analyze clinical trials, a critical step in bringing new drugs, therapies and medical devices to market. The company is therapeutically focused on critically ill patient populations, chronic diseases and unmet medical needs including the areas of regenerative medicine, cell and gene therapy, rare disease, immunology, transplantation and oncology.
CTI has associates in more than 25 countries and has worked on over 3,500 projects across six continents. CTI has contributed to more than 100 new drug and device approvals by regulatory agencies around the world.
Sen. Christian McDaniel, of Taylor Mill, welcomed the company to Kentucky.
“I am pleased to welcome CTI to Covington as the company celebrates its grand opening here in the Bluegrass State,” Sen. McDaniel said. “Our commonwealth offers so many amenities to growing businesses, and I am proud that CTI chose our community in which to grow its operations with a multimillion dollar investment and the creation of new Kentucky jobs.”
Sen. Wil Schroder, of Wilder, said the investment is a positive sign for the region.
“As the chairman of the Northern Kentucky Legislative Caucus, I am pleased to see our region attracting new businesses from out of state with multimillion dollar investments,” Sen. Schroder said. “The Kentucky General Assembly has worked hard to ensure Kentucky attracts great employers, and I know the Northern Kentucky region will serve CTI well in its endeavors. I look forward to the company’s continual success in our commonwealth.”
Rep. Arnold Simpson, of Covington, thanked everyone involved with making the project a reality.
“I’m proud to formally welcome CTI’s headquarters to its new home here in Covington, and want to thank its leaders and the state and local officials who helped to make today’s event possible,” Rep. Simpson said. “This relocation, just a short drive from its former home across the Ohio River, is deeply symbolic and just adds to Covington’s reputation as one of the best places in the country to work and do business. I’m confident we’ll see many more days like this in the near future.”
Covington Mayor Joe Meyer said he looks forward to the company and community working together.
“Covington has worked hard to make our city a place where dynamic companies like CTI can thrive,” Mayor Meyer said. “We look forward to the opportunities that this move brings for CTI and for Covington as well, as our life sciences industry continues to expand and bring more talent and innovation to our region.”
Kenton County Judge-Executive Kris Knochelmann, current Northern Kentucky Tri-ED board chair, said he anticipates CTI will be a great corporate partner.
“CTI is a welcome addition to the burgeoning life sciences industry in Northern Kentucky and Kenton County, and has already demonstrated a willingness to collaborate and engage with the community,” Judge-Executive Knochelmann said. “We congratulate CTI’s investment in RiverCenter and look forward to their continued growth and partnership in our region.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in August 2016 preliminarily approved the company for tax incentives up to $14 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.
Additionally, CTI 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.
Attorney General Andy Beshear today announced his office secured $1.3 million for the state’s General Fund from a settlement against General Motors (GM) for violating Kentucky’s Consumer Protection Act.
The settlement, reached between the attorneys general of 49 states and the District of Columbia and GM, concludes a multistate investigation into the automaker concealing safety issues related to ignition switch defects in over 9 million GM vehicles in the U.S.
As part of the settlement, GM will pay fees to each state and district, as well as ensure all applicable recall repairs are complete.
“As the people’s lawyer, my office is working to protect Kentucky families and hold accountable companies that violate Kentucky’s consumer protection laws,” Beshear said. “The $1.3 million settlement announced today will provide much needed revenue to the state’s General Fund to help address any budget shortfall.”
The multistate investigation centered on GM’s 2014 seven-vehicle recall regarding defective ignition switches, which could move out of the run position to the accessory or off position.
If this occurs, the driver experiences a loss of electrical systems, including power steering and power brakes, and if a collision occurs at this time, the vehicle’s safety airbags may fail to deploy.
The states alleged, certain employees of the automaker knew as early as 2004 that the ignition switch posed a safety defect, yet GM personnel decided it was not a safety concern and delayed making recalls. GM also continued to market the reliability and safety of its motor vehicles that were equipped with the defective ignition switch.
Kentucky’s settlement with GM has been presented to Franklin Circuit Court.
Since taking office Beshear has secured penalties from three automakers, GM, Volkswagen and Hyundai-Kia, which has yielded more than $4.7 million for the General Fund.
The Kentucky Arts Council has awarded 19 grants to 12 Kentucky schools to fund student transportation to and from arts-related field trips for students through the popular TranspARTation Grant.
The TranspARTation Grant is awarded annually by the arts council. The program is now in its fourth year. Grants are based on the mileage from the school building to the arts organization or performance venue and the number of buses necessary.
Collins Lane Elementary School in Frankfort will use its TranspARTation grant to send all of its students to StageOne Family Theatre in Louisville for a production of “The Best Christmas Pageant Ever.”
Principal Jennifer Perkins said the staff and teachers want to make that field trip available to every student at Collins Lane, where 50 percent of the student body is on free or reduced lunch.
“We are given a limited amount of funds to pay for field trips each year, and it does not cover the amount of field trips we take over the course of the year,” Perkins said. “This grant helps fund this field trip by removing the transportation cost as a barrier to student participation.”
“We went to see ‘Click, Clack, Moo’ at StageOne last year, and to see the kids faces as they ride the buses together and sit in the audience together is amazing,” Perkins said. “A lot of our families can’t afford to do something like this on their own, and Collins Lane is a big proponent of building community in classrooms and the school. Being able to do this, and not have to worry about the cost of transportation, helps us accomplish that goal.”
Schools that received grants, listed by county, arts activity and amount awarded, are:
- Clarkson Elementary School, Grayson, “Dragons Love Tacos and Other Stories” at RiverPark Center, $544; “My Father’s Dragon” at RiverPark Center, $544; “Are You My Mother?” at RiverPark Center, $272; “The Nutcracker” at RiverPark Center, $544; “Pete the Cat” at RiverPark Center, $1,088; “Where in the World” at the Speed Art Museum, $552
- South Warren High School, Warren, Louisville Orchestra Coffee Concert, Kentucky Center for the Arts, $1,000
- Forest Heights Elementary School, Nelson, “American Tales” at StageOne Family Theatre, $516
- Bondurant Middle School, Franklin, “Where in the World” at the Speed Art Museum, $416
- Collins Lane Elementary School, Franklin, “The Best Christmas Pageant Ever” at StageOne Family Theatre, $2,448
- Southern Elementary School, Scott, Music Builds Discovery with the Canadian Brass at Singletary Center for the Arts, $112
- Kingston Elementary School, Madison, “Elephant and Piggie’s We Are In a Play” at Lexington Children’s Theatre, $328
- Toliver Elementary School, Boyle, “Where in the World” at the Speed Art Museum, $328; “Sacgawea: Discovering History” at Lexington Children’s Theatre, $188; “The Best Christmas Pageant Ever” at Lexington Children’s Theatre, $376
- Daniel Boone Elementary School, Madison, “The Legend of Sleepy Hollow” at Lexington Children’s Theatre, $240
- Russell County Middle School, Russell, “The Legend of Sleepy Hollow” at Lexington Children’s Theatre, $880
- Livingston County Middle School, Livingston, “Mr. Molecule’s Bing, Bang, Boom! Science Show” at The Carson Center, $728
- Brodhead Elementary School, Rockcastle, Arc Attach Science Arts Performance at the EKU Center for the Arts, $280
Any Kentucky public or private school that supports grades pre-K through 12 may apply for a TranspARTation Grant.
Schools receiving TranspARTation Grants must attend arts events presented by one of many preapproved TranspARTation organizations.
For more information about applying for a TranspARTation Grant, visit the TranspARTation webpage, or contact Jean St. John, arts council arts education director, at jean.stjohn@ky.gov or 502-892-3124.
Gov. Matt Bevin, together with Senate President Robert Stivers and House Speaker Jeff Hoover, today unveiled “Keeping the Promise” — a comprehensive plan to save Kentucky’s ailing public pension systems.
“There is no such thing as an insurmountable obstacle,” said Gov. Bevin. “We, as a Commonwealth, have a moral and legal obligation to fulfill the promises that have been made to our public employees. This is not just about fixing our present underfunding problem. It is also about ensuring that we leave a better, financially stable Kentucky to our children.
“The right thing to do is rarely the easiest, but we are determined to address this crisis with the most fiscally responsible public pension reform plan in the history of the United States. I am confident that the rest of the country will pay close attention to this excellent work by our legislature and for good reason. For those retired, for those still working, and for those yet to come: we are truly fixing our broken pension systems. United we stand. Divided we fall.”
Highlights of the plan include:
- “Keeping the Promise” will save Kentucky’s pension systems and meet the legal and moral obligations owed to current and retired teachers and public servants
- Requires full payment of ARC and creates new funding formula that mandates hundreds of millions more into every retirement plan, making them healthier and solvent sooner
- For those still working: no increase to the full retirement age, and current defined benefits remain in place until the employee reaches the promised level of unreduced pension benefit
- For those retired: no clawbacks or reductions to pension checks, and healthcare benefits are protected
- For future non-hazardous employees and teachers: enrollment in a defined contribution retirement plan that will provide comparable retirement benefits
- For current and future hazardous employees: will continue in the same system they are in now
- Closes loophole to ensure payment of death benefits for the families of hazardous employees
- Stops defined benefits plan for all legislators, moving them into the same defined contribution plan as other state employees under the jurisdiction of the KRS Board
- No emergency clause: law will not go into effect until July 1, 2018
- Structural changes should improve the Commonwealth’s rating with credit agencies, which have downgraded Kentucky’s rating, citing unfunded pension burdens
Gov. Bevin will call the General Assembly into special session in the coming weeks to pass into law these much-needed reforms.
“Our state’s pension systems are among the worst-funded in the country,” said Senate President Stivers. “In order to move these systems forward along the path to solvency, bold action is required. The framework that we have in place for a pension reform bill is morally right, fiscally responsible, and legally defensible. I thank Governor Bevin, Speaker Hoover, and all my colleagues in the Legislature for their help and support throughout this process, and I look forward to hearing feedback from constituents and moving forward in the coming weeks.”
“Kentucky’s pension problem has been a long time in the making, and has only gotten worse by past leaders who failed to act, or even acknowledge, the issue,” said Speaker Jeff Hoover. “Unlike in the past, inaction is simply not an option. The New Majority is committed to address the pension problem by providing a strong foundation that results in long-term pension stability for public workers and teachers.”
The Commonwealth’s three major public pension systems — Kentucky Retirement Systems (KRS), Teachers’ Retirement System of Kentucky (TRS), and the Kentucky Judicial Form Retirement System (KJFRS) — collectively administer eight distinct retirement plans.
The state currently has an unfunded pension liability of at least $64 billion, ranking as the worst funded system in the nation. Using prior funding patterns, experts conclude that the Kentucky Employee Retirement System, Non-Hazardous (KERS-NH), will run completely out of money by the year 2022 if meaningful pension reform does not occur.
With $7 billion in negative cash flow over the past decade, Kentucky’s pension spending has been increasing nearly five times as fast as revenues. This effectively reduces funds available for other important budgetary priorities such as education, healthcare, public safety and transportation infrastructure.