Thermal and acoustic insulation maker K-FLEX USA plans to nearly double the size of its Franklin County, NC manufacturing operations. The company will invest $45 million in its facilities and equipment and create 100 news jobs over the next four years.
“We are excited to add to our manufacturing campus in Youngsville and look forward to continuing to be an active member in our community,” said Giuseppe Guarino, president of K-FLEX USA. “This new facility will ensure that K-FLEX USA can continue to meet the growing demand for our products in North America and around the world. We are grateful to Franklin County and the state of North Carolina for their support as we invest in our shared future.”
K-FLEX USA, a unit of Italy’s IK Insulation Group, manufactures thermal and acoustic insulation, gaskets, seals and mats designed for buyers in the energy, construction, marine, automotive and athletics industries. K-FLEX’s North Carolina workforce currently totals 195 full-time employees and contractors.
“North Carolina’s manufacturing economy is diversified, and globally competitive,” said North Carolina Commerce Secretary John E. Skvarla III. “Our appealing cost-structure and high-quality workforce align neatly with the long-range growth strategies of companies like K-FLEX, which is what makes North Carolina’s economy one of the fastest growing in the nation.”
K-FLEX’s expansion will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee. Under the terms of the company’s JDIG, the company is eligible to receive up to $1.1 million in total reimbursements. Payments will occur in annual installments over 12 years pending verification by the state departments of Commerce and Revenue that the company has met incremental job creation and investment targets. JDIGs reimburse new and expanding companies a portion of the newly created tax-base with the goal of increasing the overall tax benefit to the State of North Carolina. The state reimbursement is contingent upon local participation from Franklin County.
By law, JDIG projects must result in a net revenue inflow to the state treasury over the life of the award. For projects in Tier 2 counties such as Franklin County, 15 percent of the eligible grant is directed to the state’s Industrial Development Fund – Utility Account to help finance economic infrastructure in less populated counties. K-FLEX’s expansion could provide as much as $126,100 in new funds for the Utility Account.
In addition to NC Commerce and the Economic Development Partnership of North Carolina, K-FLEX’s expansion was supported by the North Carolina General Assembly, the North Carolina Community College System, the state Department of Transportation, Franklin County and the Franklin County Economic Development Commission.
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