LOUISVILLE, Ky. (May 9, 2017) – With ground turned today during a ceremony at LINAK U.S. Inc.’s plant, which manufactures linear actuators for hospital beds, office desks, farm equipment and other uses, Gov. Matt Bevin congratulated the company on its $33 million expansion that will create 413 full-time jobs.
“Since locating in the commonwealth more than 20 years ago, LINAK has steadily grown its business and presence, in Louisville,” Gov. Bevin said. “We are witnessing another great investment in Kentucky as ground breaks today on the expansion of LINAK’s Louisville-based manufacturing facility. Kentucky is on the rise, and I thank LINAK for its decision to select Kentucky to support its expansion. We hope to see continued growth for years to come.”
The approximately 145,000 square-foot building will double the size of LINAK’s manufacturing plant on Stanley Gault Parkway. The investment includes the purchase and installation of new production equipment. The project will allow LINAK to improve efficiency generate higher profits and make more reliable deliveries to customers while lowering production costs by 25 percent. LINAK’s leaders expect to double output and sales over the next five years.
“With this expansion LINAK will significantly increase the domestic production footprint which we know is highly valued by our customers,” said Jan Peterson, vice president of operations at LINAK. “Since day one, both the city of Louisville and the commonwealth of Kentucky have been a great home for us. We are excited to continue our partnership with this community for years to come.”
LINAK, headquartered in Denmark, operates facilities in 35 countries and maintains its Americas headquarters in Louisville. The company introduced linear actuators to many existing products, improving ease of operation. Linear actuators use low-voltage DC motors to convert rotational movement into linear motion. Uses for actuators include in hospital beds, agricultural appliances, adjustable workstations and office desks. LINAK’s other products include lifting columns, control boxes, controls and a wide range of accessories.
LINAK opened a sales office in Louisville in 1994 and established its manufacturing facility in 1999, which currently employs 300 people.
Louisville Mayor Greg Fischer said the city will continue to work closely with the company.
“LINAK’s expansion and investment in Louisville is a testament to our city’s strength in advanced manufacturing, which is a key component to our economic success – today and in the future,” Mayor Fischer said. “Louisville is proud to be the home of LINAK’s US headquarters, and we look forward to helping the company achieve more for its customers, our city and our state.”
Sen. Julie Raque Adams, of Louisville, pointed to the community’s business environment as a tool for attracting new business.
“LINAK’s groundbreaking is great news for our ever-expanding city and yet another testament to Kentucky’s business-friendly climate,” Sen. Adams said. “I thank LINAK for this additional investment in our community and workforce, and I look forward to this company’s continual success here in Louisville.”
Rep. Jerry Miller, of Louisville, said the expansion reflects a statewide effort to create jobs in Kentucky.
“I’m extremely pleased about LINAK’s increased investment into their existing facility in Louisville,” Rep. Miller said. “Over 400 new jobs and a $33 million investment is just what our area needs to employ our citizens, expand our tax base and build our community. Today’s announcement is not only a testament to our city and its workforce, but to the strong work of the Governor, the Cabinet for Economic Development and the legislature to bring quality manufacturing jobs to the commonwealth.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in December 2016 preliminarily approved the company for tax incentives up to $3.5 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 LINAK for up to $350,000 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.
LINAK 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 2016, the Kentucky Skills Network provided training for nearly 95,000 Kentuckians and 5,000 companies from a variety of industry sectors.
For more information on LINAK, visit www.linak-us.com.
A detailed community profile for Jefferson County can be viewed at http://bit.ly/LouisvilleJeffersonCo.
The Kentucky Cabinet for Economic Development is the primary state agency responsible for encouraging new jobs and investment in the state. New capital investment announced in Kentucky in 2015 totaled a state record $5.1 billion, spurring more than 16,000 projected new jobs. Information on available industrial properties, workforce development assistance, incentive programs, community profiles, small business development and other economic development resources is available at www.ThinkKentucky.com.