Fruehauf to bring US back to Bowling Green by creating 288 jobs
FRANKFORT, Ky. (WTVQ / Press Release) – Trailer and equipment maker Fruehauf Inc. to set up first U.S. plant in nearly 25 years in Bowling Green with $ 12 million investment expected to create 288 full-time jobs in the next few years.
“The nearly 300 jobs that will be created through this project will greatly benefit families in south-central Kentucky as we continue to attract quality opportunities for our people across the state as we move away from this pandemic. “said Governor Andy Beshear. “I am proud to welcome Fruehauf to the Commonwealth as we build on our already diverse base of auto-related businesses in Kentucky.”
The company will be located in an unfinished specification building in Bowling Green’s Kentucky Transpark. This location will allow the company to better serve its customers in the United States and Canada with components primarily manufactured off-site and assembled at the new location.
Fruehauf’s production operations are currently located only in Mexico, since the closure of its facilities in the United States in 1997.
“We are delighted to have our investment in the US plant here in Bowling Green. We have chosen a community with a strong automotive heritage, which we believe our founder, August Fruehauf, would appreciate given the pivotal role he played in the development of the automotive industry and his subsequent induction into the Hall of Fame. automotive industry, ”said Tom Wiseman. , president of Fruehauf USA and Canada.
Fruehauf has been manufacturing transportation products since the company was founded in Detroit, Michigan in 1890. Its founder, Fruehauf, was inducted into the Automotive Hall of Fame in 2017 as the inventor of the semi. -trailer. In addition to semi-trailers, the company’s related products include forklifts, platforms, container frames, tanks, hoppers and turns. Fruehauf is a subsidiary of the Fultra Group, a diversified manufacturing company based in Mexico.
Fruehauf adds to Kentucky’s current presence of Mexican-owned operations, which includes nine facilities employing more than 3,400 people in the state.
Since 2020, Kentucky auto-related companies have announced nearly 40 new settlement and expansion projects that are expected to create more than 1,500 full-time jobs with more than $ 360 million in investments announced. . More than 525 auto suppliers and four auto assembly plants currently operate in the Commonwealth, employing over 100,000 Kentucky residents.
Fruehauf’s investment and expected job creation bolster the Commonwealth’s recent economic momentum, as the state strengthens in the wake of the pandemic’s effects.
Last month, Moody’s Analytics published a positive economic outlook for Kentucky, pointing out that mass vaccination was the driving force behind a sustained recovery in consumer services. The state’s recovery, Moody’s said, benefited from earlier reopening efforts and increased demand for manufactured goods relative to services. The report also found that Kentucky’s manufacturing industry has outperformed the nation’s since the national downturn last year.
Fitch Ratings improved the state’s financial outlook to stable last month, reflecting the Commonwealth’s strong economic recovery. April sales tax receipts from the state set a monthly record of $ 486.5 million, as did vehicle use tax receipts of over $ 64 million.
In March, Site Selection magazine’s annual Governor’s Cup ranking for 2020 placed Kentucky at the top of the South Central region, and third nationally, for eligible projects per capita. The Commonwealth also ranked seventh in total projects, the highest of any state with a population of less than 5 million. Site Selection also recently tied Kentucky for fifth in its 2021 Prosperity Cup ranking, positioning the state among the nation’s leaders in business climate.
“Fruehauf is the founder of semi-trailers and known around the world for his long-standing contribution to the automotive industry. We are delighted that they chose us for the site of their first manufacturing facility in the United States in 25 years, ”said Warren County Judge / Executive Mike Buchanon. “They will join a growing group of manufacturers in Kentucky Transpark. Warren County has proven to be the perfect place to develop a business, and we are confident in our ability to support their growth.
“By investing in Bowling Green, Fruehauf is creating additional opportunities for all businesses in our community,” said Bowling Green Mayor Todd Alcott. “The impact of their investment will be felt by local retailers, restaurants, banks, service providers and more. Within our community, we understand that we all rise up together, and this inspires our pro-growth mindset. “
“The Bowling Green Area Chamber of Commerce worked with Fruehauf to ensure that everything she needed at a site was in Bowling Green. Our recent investments in infrastructure, our central location in the United States and our workforce played a key role in their decision to move to Transpark, ”said Ron Bunch, President and CEO of the Bowling Green Area Chamber of Commerce. “The chamber is available to continue providing the support that Fruehauf will need as she begins to operate in our community. “
“TVA and Warren RECC congratulate Fruehauf on its decision to localize its business and create hundreds of job opportunities in Bowling Green. Helping foster job creation and investment in the valley is fundamental to TVA’s service mission, ”said John Bradley, senior vice president of economic development at the Tennessee Valley Authority. “We are proud to partner with the Kentucky Cabinet for Economic Development and the Bowling Green Area Chamber of Commerce to help continue this mission and celebrate this announcement.”
Dewayne McDonald, President and CEO of Warren RECC, said, “We are delighted to welcome Fruehauf to Kentucky Transpark and look forward to serving them as a Warren RECC member.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) approved a 10-year incentive agreement with the company in May under the Kentucky Business Investment Program. The performance-based deal can provide up to $ 4 million in tax incentives depending on the company’s investment of $ 12 million and annual goals of:
- Creation and maintenance of 288 full-time jobs for residents of Kentucky over 10 years; and
- Pay an average hourly wage of $ 21, including benefits for these jobs.
By meeting its annual goals over the term of the agreement, the business may be eligible to retain a portion of the new tax revenue it generates. The company can claim eligible incentives for its income tax and / or employee contributions.
Additionally, Fruehauf may receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, businesses can benefit from free recruitment and placement services, personalized training at low cost, and job training incentives.
For more information on Fruehauf, visit Fruehauf.mx or SingingWheels.com.
A detailed community profile for Warren County can be viewed here.