FRANKFORT, Ky. (Dec. 7, 2017) – Automobile gear manufacturer DAE-IL plans to invest $50 million in a new facility, their first in the United States, and equipment upgrades in Murray, preserving 110 jobs and create 10 additional positions averaging $19 per hour with benefits.
State officials approved economic development incentives for the project this morning in Frankfort at a monthly Kentucky Economic Development Finance Authority board meeting.
“We are excited to welcome DAE-IL Corp. to Kentucky,” Gov. Bevin said. “We are grateful that they chose the commonwealth for their first ever manufacturing operation in the United States. DAE-IL USA will be an excellent addition to our automotive industry and a perfect fit for the dedicated workforce in Calloway County. We look forward to the opening of the new facility and strong growth in Kentucky for years to come.”
DAE-IL Corp. will construct a 295,000-square-foot facility in the Murray West Industrial Park. The Murray location, which will operate under the name DAE-IL USA, will produce gears for the automotive industry. Construction is expected to begin this month and be completed by the end of 2018.
“DAE-IL USA is very excited for our first manufacturing operation to be in Murray,” said DAE-IL Corp. President Jung Ryol (Johnny) Kim. “Of all the locations that we considered, all of our needs were met and exceeded by this community. We believe we can be successful there and we look forward to being part of the community.”
Founded in 1976 and headquartered in Ulsan, South Korea, DAE-IL Corp. manufactures and sells powertrain parts for automotive, heavy equipment and motorcycles. Its products include gears, car transmission and engine parts, heavy equipment products – such as trans axles, drive axles and transmission and excavator products – and motorcycle transmission and engine products. The company’s primary export markets include the US, China, Europe and Japan.
Sen. Stan Humphries, of Cadiz, welcomed the company’s first US operation.
“I am pleased to welcome DAE-IL Corp. to the United States and Kentucky with the selection of their new location and $50 million investment in Murray. Kentucky is quickly emerging as a global leader in the auto industry, and I am certain our region will serve this company well with its growing, diverse workforce and prime centralized location.”
Rep. Kenny Imes, of Murray, noted the impact the company will have on the region.
“Since Republicans took control of the House nearly a year ago, economic development has been the number one priority of the House Republican Majority,” Rep. Imes said. “I am elated about the $50 million dollar investment and 120 additional good-paying jobs that DAE-IL Corp. plans to establish in Murray. We will continue to fight for economic growth that will make Kentucky all we know that it can be.”
Murray Mayor Jack Rose shared hopes that DAE-IL will make its home in the city for years to come.
“As Mayor of Murray, I am always happy to see the potential for new companies to join our community and provide employment for our citizens,” Mayor Rose said. “This company is a great example of that and we look forward to finalizing the details necessary to complete this project. This project involves a lot of high-tech jobs at good pay with a huge investment in Murray. We will certainly work to make this happen as quickly as possible and look forward to their presence here for many years.”
Calloway County Judge-Executive Larry Elkins said the company has made a strong impression in a short period of time.
“I applaud the efforts of the MCEDC and Cabinet for Economic Development in bringing this tremendous investment of $50 million to our community along with 120 jobs at a great rate of pay,” Judge Elkins said. “We need jobs that will raise the bar in terms of pay and technical skills, so that people can have a living wage and take care of their families. Having seen the products DAE-IL makes, as well as meeting with the CEO of their company, I am convinced that they will both be a good fit for our community, as well as the potential to grow far beyond the initial jobs projection of 120. A number of these jobs will also involve engineering, office support and other front office opportunities that will help keep more graduates here in the community. While there are still a lot of details to work out, we appreciate the Cabinet approving their initial incentive package and will do our part to make this work.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives up to $3 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.
Additionally, KEDFA approved DAE-IL Corp. for up to $500,000 in 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.
DAE-IL Corp. also can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. In fiscal year 2017, the Kentucky Skills Network provided training for more than 120,000 Kentuckians and 5,700 companies from a variety of industry sectors.
For more information on DAE-IL Corp., visit www.dicorp.co.kr.
Add Comment