FRANKFORT, Ky. — T. Marzetti Co.’s increases the company’s expansion project announced a year ago from 140 to 220 full-time jobs and represents the company’s largest-ever investment of $133 million, up from $93 million.
The Marzetti operation in Horse Cave manufactures salad dressings, sauces, and other foods for retail and foodservice markets. It currently employs over 500 people.
The company is now moving ahead with the 184,500-square-foot expansion, which will create additional manufacturing space. The company plans to purchase new equipment to increase dressing and sauce production, add eight new processing kitchens and create several packaging lines to meet growing customer demand. Work on the project has begun and is expected to be completed by July 2022.
Marzetti’s roots as a food producer date back to the late 19th century. The company, headquartered in Columbus, Ohio, was acquired by Lancaster Colony Corp. in 1969. Lancaster Colony is also the parent company of several other food companies, including Sister Schubert’s Homemade Rolls Inc., which produces frozen dinner rolls at its facility adjacent to the Marzetti operation in Horse Cave.
Including this updated announcement, Marzetti and Sister Schubert’s have combined to announce approximately $313 million in investment with the creation of more than 780 jobs in Hart County in less than two decades.
Marzetti is among the more than 350 food and beverage manufacturing, service, and technology facilities located in Kentucky currently employing over 52,000 people. In 2020 alone, the industry announced 53 new location or expansion projects expected to create more than 1,500 full-time jobs with $974 million in announced investments.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in February 2020 preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $2.75 million in tax incentives based on the company’s originally announced investment of $92.8 million and annual targets of:
- Creation and maintenance of 140 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $25.72 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.
Additionally, KEDFA approved Marzetti for up to $250,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). 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.
In addition, Marzetti 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.