FRANKFORT, Ky. – Eberspaecher North America Inc., a system developer and supplier of exhaust technology, thermal management systems, and automotive electronics, is expected to create 214 jobs with a more than $30 million investment to establish a new operation in Louisville.
Eberspaecher will occupy over 125,000 s.f. of an existing 314,500-s.f. facility at 7001 Greenbelt Highway in the Louisville Riverport, to serve its recently expanded customer base in the U.S. The new facility also will allow the company to increase its focus on environmental protection, safety, and comfort across its products, which includes exhaust emission conversion technologies and acoustic systems for passenger vehicles. Its innovative products improve air quality and sustainably reduce traffic noise. Work on the project is scheduled to begin in May and be completed by August.
Eberspaecher North America, founded in 1973 and headquartered in Novi, Mich., is a subsidiary of Germany-based Eberspächer Group, a global automotive supplier that specializes in exhaust technology, climate control systems, and automotive controls. Eberspächer has operated since 1865, and currently has 80 locations in 29 countries, employing approximately 10,000 people around the world. The new plant increases the company’s footprint in the U.S. to seven sites.
More than 525 automotive suppliers and four automotive assembly plants currently operate in Kentucky, employing over 100,000 people throughout the state. In 2020, auto-related companies announced 31 new location and expansion projects expected to create 970 full-time jobs with $256.8 million in announced investment.
Eberspaecher joins 78 German-owned manufacturing, service, and technology operations currently located in the commonwealth. Companies with German ownership employ nearly 14,000 people in Kentucky.
The Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $4 million in tax incentives based on the company’s investment of $34.4 million and annual targets of:
- Creation and maintenance of 214 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $25 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.
In addition, Eberspaecher 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.