$118 million investment will focus on tobacco processing and fermentation
FRANKFORT, Ky. (Feb. 28, 2014) – U.S. Smokeless Tobacco Co. plans to build a new facility and expand its current plant in Hopkinsville. The company will invest approximately $118 million and create 42 new jobs.
U.S. Smokeless Tobacco and its predecessors have had a presence in Kentucky for more than 70 years. The company currently employs 90 full-time workers in the commonwealth.
“U.S. Smokeless Tobacco’s investment will make a significant economic impact on the state and bring more jobs to the region,” said Gov. Steve Beshear.
The new 230,000-s.f. facility will be used to process aged tobacco, including shredding, drying and flavoring. U.S. Smokeless also plans to add approximately 80,000 s.f. to its existing tobacco fermentation plant in Hopkinsville. Both facilities in Christian County will be operational in 2016.
“As our smokeless tobacco business continues to grow, U.S. Smokeless Tobacco Company is looking toward our future,” said Brian W. Quigley, USSTC president and CEO. “We are pleased to continue investing in Kentucky and to partner with the state for this project. This new facility will complement existing production, provide jobs and investment in the local economy, and will offer additional expansion opportunities as business grows in the future.”
U.S. Smokeless is the leading producer and marketer of moist smokeless tobacco, one of the fastest growing tobacco segments in the United States. U.S. Smokeless is owned by Altria Group.
Its brands include Copenhagen, Cope, Skoal, Red Seal and Husky.
The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives up to $4.5 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets. The City of Hopkinsville and Christian County also contributed an incentive package of $1.4 million to secure this project.
“U.S. Smokeless Tobacco has been an important part of our community for more than 35 years,” said Christian County Judge-Executive Steve Tribble. “We couldn’t be happier for the growth of a tremendous agriculture partner. We congratulate U.S. Smokeless on their successes and look forward to continuing that partnership.”
For more information on U.S. Smokeless Tobacco Company, visit ussmokeless.com.