ZF Steering Invests $95.8 Million in Kentucky Plant
Gov. Steve Beshear has announced that ZF Steering Systems LLC will undergo a major expansion in Northern Kentucky, investing $95.8 million over the next three years. The growth is a result of increased demand for the company‚Äôs new and existing products and involves constructing two new buildings and creating 374 new full-time jobs over the next three years at its facility in Florence, Ky.
‚ÄúKentucky is proud to be the home of world-class companies such as ZF Steering Systems and strives to partner with its existing industries to create new economic development opportunities,‚ÄĚ said Gov. Beshear. ‚ÄúZF Steering Systems‚Äô $95.8 million investment is a tremendous boost to the Commonwealth. We look forward to working with ZF Steering Systems as it grows and prospers in Northern Kentucky.‚ÄĚ
ZF Steering Systems is a subsidiary of Germany-based ZF Lenksysteme GmbH, and has been located in Kentucky since 1994. ¬†The company manufactures steering components for passenger cars and SUVs, and is adding capacity to meet demand for its new electric steering gear. Construction of two new buildings totaling 175,000 additional square feet will begin in November and is expected to be complete by summer 2011.
‚ÄúThis important investment will allow us to meet the increasing demand for our premium steering components and expand our manufacturing footprint in Northern Kentucky,‚ÄĚ said Pierre Abboud, president & CEO, ZF Steering Systems LLC. ‚ÄúThe area‚Äôs skilled workforce and competitive business environment were among the reasons we chose to locate here, and we look forward to continued growth in the region.‚ÄĚ
An incentive package was preliminarily approved by the Kentucky Economic Development Finance Authority (KEDFA) to encourage the near $100 million investment in Kentucky. ¬†ZF Steering was approved for up to $7.5 million in tax incentives through the Kentucky Business Investment program. ¬†The performance-based incentive can be earned over a 10-year period through corporate income tax credits and wage assessments.
“ZF Steering Systems is adding a significant amount of new jobs in addition to their substantial number of existing employees,‚ÄĚ said Florence Mayor Diane Whalen. ‚ÄúThis economic development project serves as an example of how companies can prosper and grow in Northern Kentucky. ¬†Good things can happen by cooperatively working together.‚ÄĚ