MIDDLESBORO, Ky. — Executives from Flash Steelworks, Inc. break ground on a new steel manufacturing facility in Middlesboro. Over the next 15 years, Flash Steelworks will invest $12.1 million and create 250 full-time jobs at an hourly rate of $39, including benefits. Of those, 100 new jobs are expected to be created in the next three years.
At the groundbreaking, Lt. Gov. Coleman also announced that $1 million in Appalachian Regional Commission (ARC) funding will aid in constructing the steel manufacturing facility. The ARC funding will be matched by $5 million in state funds, allocated from the 2022 state budget.
Flash Steelworks is a private steel manufacturer that uses a unique and highly specialized electronic/thermal process to produce blast-resistant yet lightweight, military-grade plate steel. The company has a contract with the federal Department of Defense to produce armor for the U.S. military.
“Flash Steelworks is very pleased to team with everyone in the State of Kentucky to produce a world-class armor plate to protect those in harm’s way,” said Gary Cola, Jr., founder and chief technology officer at Flash Steelworks. “Starting in Middlesboro, we will deploy leading-edge advanced steel technology and products in what is planned to be a regional industrial hub. This new facility is just a first step toward bringing many truly high-paying, long-term jobs to Southeast Kentucky to the benefit of all.”
In addition to the ARC and state funds, the Kentucky Economic Development Finance Authority (KEDFA) in September preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $3 million in tax incentives based on the company’s investment of $12.1 million and annual targets of:
• Creation and maintenance of 250 Kentucky-resident, full-time jobs across 15 years; and• Paying an average hourly wage of $39 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, the company can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
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