MT. STERLING, Ky. — Neogen Corp., an animal and food safety product manufacturer, opened its new facility in Montgomery County, a $9.8 million investment creating 79 full-time jobs and furthering the Governor’s initiative to grow Kentucky’s agritech sector.
Neogen has operated in Kentucky since located in Lexington in 1992 with the acquisition of ELISA Technologies. ELISA was formed in 1990 through a license agreement with the University of Kentucky to develop diagnostic test kits to detect abused and therapeutic drugs in racehorses and greyhounds. Lexington serves as Neogen’s Animal Safety headquarters, which has grown to employ 170 residents across two Lexington facilities.
In 2021, an affiliate of Phoenix Investors purchased a 267,000-square-foot facility on Owingsville Road, formerly home to Regal Beloit. Shortly after acquiring the property, Phoenix entered into a long-term lease with Neogen for the facility. The company’s investment includes building improvements and new equipment. Work on the project was completed in recent weeks.
In 2020, Neogen’s Lexington operations stepped up in the face of the COVID-19 pandemic. Neogen increased manufacturing and distribution of critically needed biosecurity products, including disinfectants, cleaners and hand sanitizers, while working closely with government agencies worldwide to approve products for use quickly.
“As Neogen continues to grow domestically and internationally, it is extremely important that we have facilities that can quickly ship products to our customers worldwide,” said Doug Jones, Neogen’s chief operating officer. “This expansion of our Kentucky distribution centers will significantly support our domestic and global growth plans. Neogen is excited to work with the Mt. Sterling community to continue improving the lives of people and animals around the world, providing solutions promptly.”
“Neogen’s commitment to the facility represents a tremendous outcome for Phoenix and the Mt. Sterling community,” said Phoenix Managing Director Anthony Crivello. “We are thrilled to be part of bringing such a high-quality company to Mt. Sterling.”
Neogen, founded in 1982, is headquartered in Lansing, Michigan. Its animal safety division manufactures and markets various animal health products, including diagnostics, pharmaceuticals, supplements, biologics, wound care, veterinary instruments, rodenticides, disinfectants and insecticides. The company employs approximately 1,700 people worldwide, with nine locations in the U.S. and 15 international facilities.
Phoenix Investors is a leading expert in the acquisition, renovation and release of former manufacturing facilities in the United States. The revitalization of facilities throughout the continental United States leads to positively transforming communities and restarting the economic engine in those communities. Phoenix’s affiliate companies hold equity interests in a portfolio of industrial properties totaling approximately 61 million square feet spanning 29 states. Phoenix owns approximately 2 million square feet of industrial real estate in Kentucky.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in June 2021 preliminarily approved an incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide tax incentives based on the company’s investment and annual job and wage targets.
KEDFA approved Neogen 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 wage assessments.
In addition, Neogen 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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