FRANKFORT, Ky. (Aug. 30, 2016) – Gov. Matt Bevin and Louisville Mayor Greg Fischer congratulated Midea America Corp., a subsidiary of one of the world’s largest appliance makers, as leaders broke ground on a research and development center in Louisville, a $10 million facility projected to create up to 25 jobs.
“We are honored to welcome the construction of Midea’s first U.S.-based research and development center to Louisville,” Gov. Bevin said. “Kentucky’s renowned manufacturing sector, and the many engineering and R&D experts employed in it, make the Commonwealth the top choice for major international companies. Midea will make significant contributions as a corporate partner and we look forward to seeing its Kentucky operation grow in the coming years.”
The 30,000-square-foot Midea America Research Center, or MARC, will include custom-designed office, engineering and laboratory space as well as testing equipment. Employees will develop appliances for the North American market as the company looks to expand its global sales and customer base.
Company executives expect MARC, located on Chestnut Station Court, to open by January 2017. It will replace Midea’s current Kentucky offices, established in 2015.
“We are truly excited to break ground on this state-of-the-art R&D Center right here in Louisville, the epicenter of the ‘Appliance Corridor’ in the U.S.,” said Mark Wilson, director of technology for MARC. “As a Kentucky native, I’m proud to bring exceptional talent to the State and to keep the tradition of excellence in home appliances well and truly alive.”
“Today marks the latest push by Midea to grow our presence here in Kentucky, and in the U.S. market,” said Jim Tomaszewski, President of Midea America. “We know our success in this market is wholly dependent on developing compelling products for the US consumer. That’s why Midea invests 3 percent of global revenue in R&D every year, and why we are investing in our R&D footprint here in the U.S.”
Midea America Corp., a division of Chinese-based Midea Group, has been serving North America with air conditioning, refrigeration, laundry, dishwashers, floor care and numerous small appliances for more than 10 years.
Mayor Fischer welcomed the company’s new location and increasing presence.
“Louisville’s rising technology and innovation culture makes it a perfect place for the Midea America Research Center, especially with an appliance focus where this community has a historical advantage,” Mayor Fischer said. “Midea’s investment in Louisville is adding to our increasing manufacturing sector and we look forward to working with them for their successful future in our community.”
Established as a local workshop in Guangdong Province, China in 1968, Midea grew into a leading consumer appliances and air-conditioning systems manufacturer with operations around the world. The company provides high-quality products and services in both Midea-branded and private labels. It currently operates 21 manufacturing sites globally and 260 logistics centers. Midea’s nearly 50 years of persistent growth brought its global revenues to $24 billion in 2014.
Midea’s investment in Kentucky adds to the state’s success in attracting foreign direct investment. Kentucky is home to nearly 470 internationally based companies employing nearly 100,000 people.
Sen. Paul Hornback, of Shelbyville, said the new facility will position Midea well for the future.
“This new facility, additional jobs and increased investment by Midea America – one of the world’s leading appliance makers – is a point of pride for the community and region,” he said. “I thank Midea and its leadership for their foresight in expanding in Kentucky and look forward to their continued growth and success.”
Rep. Jerry Miller, of Louisville, said Midea’s new R&D center will add momentum to the area’s key appliance industry.
“It’s a great thing to see Midea, a key constituent in the appliance industry, increasing its presence here in Louisville,” Rep. Miller said. “The combination of resources, knowledge base and environment that Midea will continue to leverage here ensures a great fit and a successful future.”
To encourage the investment and job creation in Louisville, the Kentucky Economic Development Finance Authority (KEDFA) in March 2015 preliminarily approved the company for tax incentives up to $800,000 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.
Additionally, Midea 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. Last year, the Kentucky Skills Network trained more than 84,000 employees from more than 5,600 Kentucky companies.
For more information on Midea, visit www.midea.com.
A detailed community profile for Louisville (Jefferson County) can be viewed at www.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.