LEXINGTON, Ky. — Gov. Andy Beshear announced continued momentum of the state’s manufacturing sector as Lexair Inc. will expand existing operations in Lexington with an $8.5 million investment creating 14 quality jobs.
The project will see the company expand its current operation in Lexington by 35,000 square feet, bringing its total operational space to over 78,000 square feet. The expansion will allow additional space to house manufacturing assets from Keystone, an Emerson brand, for the U.S. Navy markets. These assets include intellectual property licenses for technology that Emerson trademarks. All manufacturing for these products will move from Emerson’s Pasadena, Texas, facility to Lexair’s new and expanded factory in Lexington.
“We are returning to our roots with this acquisition,” said Lexair President Wes Allen. “We started as a defense contractor 45 years ago, and these products synergize our current operations. This expansion provides for the future viability of Lexair, benefiting its customers, employees and community for many years to come.”
Founded in 1977, Lexair is a third-generation family-owned manufacturing corporation in Lexington. The company manufactures machine tool products, commercial hydraulic and pneumatic control valves and a series of CO2 evacuation compressors and stainless valves for the U.S. Navy. The company has been involved in the naval and industrial markets for over 45 years. Lexair understands the critical importance of these products for the U.S. Navy supply base and is committed to providing the highest quality products to support the needs of the U.S. Navy and its customers.
This expansion adds to Kentucky’s thriving manufacturing sector, which includes over 5,000 facilities and employs over 250,000 people statewide. Administration-to-date, more than 550 new locations and expansion projects within the industry are expected to create nearly 26,000 full-time jobs with over $18.6 billion in new investments.
Lexington Mayor Linda Gorton looks forward to the company’s continued success and the creation of quality manufacturing jobs in Lexington.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in December 2022 preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $300,000 in tax incentives based on the company’s investment of over $8.5 million and annual targets of:
- Creation and maintenance of 14 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $41.97 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, Lexair 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.