GRAVES COUNTY, Ky. — Osmundson Mfg. Co. announced it would locate a new facility in Graves County with a $12.5 million investment to create 80 quality Kentucky jobs over the coming years.
The company’s investment will include the purchase of nearly 35 acres to construct a 150,000-square-foot facility, which will house two hot production lines and support cold workstations that will produce 20-inch and larger disc blades for both the agriculture and construction industries. Construction on the building is scheduled to begin in 2023 and is expected to be completed by 2025.
“Osmundson is excited about the expansion of our business and the opportunities that come with this new facility and from being a part of the Mayfield community,” said Heather Bruce, president of Osmundson. “We believe this expansion will set us up for another 120 years of success and we’re committed to building that together through the involvement and support of a great community.”
Osmundson Mfg. Co. is a fifth-generation, family-owned manufacturer of high-quality, high-performance tillable blades and cultivation tools. Osmundson blades are 100% American-made and have been for nearly 120 years. Founded in 1903 as Osmundson Spade, the company developed a revolutionary spade that resists breakage. The “unbreakable spade” now sits on display in the Smithsonian. Osmundson Spade grew to become Osmundson Mfg. Co. through the evolution of agriculture. The company currently employs approximately 100 employees at their 142,000-square-foot headquarters and production facility in Perry, Iowa.
Osmundson adds to Kentucky’s impressive manufacturing presence, which includes nearly 5,000 facilities that employ around 250,000 residents. According to the National Association of Manufacturers, over 13% of the commonwealth’s workforce is in manufacturing, well above the national average of 8.5%.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1.5 million in tax incentives based on the company’s investment of $12.5 million and annual targets of:
- Creation and maintenance of 80 Kentucky-resident, full-time jobs across 15 years; and
- Paying an average hourly wage of $36.07 including benefits across those jobs, and an average base pay of $21.74 not including benefits.
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, Osmundson Mfg. Co. 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.
Click here for more Kentucky business news.
