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PACCAR Parts breaks ground on Louisville Distribution Center

Aftermarket parts distributor to create 80 jobs in Jefferson County

FRANKFORT, Ky. PACCAR Parts, the distributor of aftermarket parts for heavy- and medium-duty trucks, trailers, buses and engines, broke ground last week on a $52.2 million, state-of-the-art parts distribution center in Louisville Riverport Authority’s Phase 5 development, an investment expected to create 80 full-time jobs.

“PACCAR Parts is a world-class company, and I am proud its leaders chose the commonwealth to expand its global operations,” Gov. Andy Beshear said. “The company will help us to build a better Kentucky by providing competitive wages and benefits for the people of Kentucky and will have a positive impact on our economy and the local community.”

Company leaders today were joined by local officials and representatives from Louisville-based Abel Construction, Luckett & Farley, Kenworth of Louisville, TLG Peterbilt – Louisville and Dynacraft, a division of PACCAR, to break ground on what will be a 260,000-square-foot facility for motor-vehicle-related parts distribution, including original equipment and replacement parts and aftermarket products. The new location is the company’s 19th parts distribution center, increasing the company’s global footprint to more than 3.4 million square feet of warehouse space.

The Louisville location will allow the company to increase parts availability for dealers and customers in the central, mid-Atlantic and southeastern regions of the U.S. and provide parts capacity to support new truck and engine models. The facility is expected to be operational in 2022.

“The Louisville parts distribution center will use the latest technologies to reduce the time between order placement and delivery, allowing us to maximize uptime for customers,” said Jim Walenczak, PACCAR Parts assistant general manager – operations.

“We are dedicated to providing customers with the highest level of product availability, quality service and unmatched value in the industry,” added David Danforth, PACCAR Parts general manager and PACCAR vice president.

PACCAR Parts is a division of PACCAR Inc., a Bellevue, Washington-based manufacturer of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF names with roots dating back to the early 1900s. The company distributes products to customers globally through an extensive dealer network that includes 2,200 locations worldwide. Additional services include the design and manufacture of advanced diesel engines, financial services, information technology and parts distribution related to its truck production.

In 2020 in Kentucky, auto-related companies announced 31 new location and expansion projects expected to create 970 full-time jobs with $256.8 million in announced investment. More than 525 automotive suppliers and four automotive assembly plants currently operate in Kentucky, employing over 100,000 people throughout the state.

The Kentucky Economic Development Finance Authority (KEDFA) in March 2019 preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $500,000 in tax incentives based on the company’s investment of $52.2 million and annual targets of creating and maintaining 80 Kentucky-resident, full-time jobs across 10 years and paying an average hourly wage of $23.50 including benefits across those jobs.

Additionally, KEDFA approved PACCAR for up to $1 million 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.