FRANKFORT, Ky. — Flottweg Separation Technology Inc., a manufacturer of centrifuges and other liquid-solid separation equipment, committed to invest $1.75 million and creating 12 high-wage jobs with a new warehouse facility in Boone County.
Flottweg leaders will reinvest in the Northern Kentucky operation, which assembles and repairs machinery for the company’s existing customer base. The expansion – the company’s fourth since 2011 – comes in response to rising demand and will accommodate increased parts manufacturing. The investment will support the construction of a new 15,000-square-foot warehouse facility on Flottweg’s existing campus on Toebben Drive, expected to be completed by Q1 2023.
“New jobs are continually being created and community involvement will expand with the growth of our building,” said Flottweg President Dan Ellis. “We are happy to grow our presence here in Northern Kentucky. Most of us live and work here and consider it our corporate responsibility to invest in our neighborhood.”
“Our U.S. subsidiary has been instrumental in the growth of the company,” added CFO Peter Frankfurter. “With this expansion, we want to empower them to continue this forward momentum.”
Established in 2006, Flottweg Separation Technology is a subsidiary of Flottweg SE, which was founded in Germany in 1932. Flottweg SE has grown into a global technology leader producing centrifuges, belt presses, and separators used for liquid-solid separation. The company’s products support a range of industries, including the mining, petrochemical, chemical, pharmaceutical, food and beverage, and machining sectors. Its products also have environmental uses, including the treatment of wastewater or oil sludge.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in March preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $112,000 in tax incentives based on the company’s investment of $1.75 million and annual targets of:
Creation and maintenance of 12 Kentucky-resident, full-time jobs across 10 years; and Paying an average hourly wage of $38 including benefits across those jobs. Additionally, KEDFA approved Flottweg for up to $50,000 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.
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, the company can receive resources from Kentucky’s workforce service providers. These include no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.
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