Bluegrass Times

FRANKFORT, Ky.– On July 6, Gov. Andy Beshear announced new growth in the state’s metals-related sector as Southern Coil Solutions, a leading provider of advanced coil handling and storage solutions, will invest over $27 million into a fully automated steel coil warehouse distribution and logistics center in Bowling Green that will create 30 new full-time jobs.

“Southern Coil Solutions is an incredible example of the kinds of companies that are locating in Kentucky and adding to our thriving economy,” said Gov. Beshear. “I want to congratulate the company on its new automated steel coil distribution and logistics center in Warren County and thank its leadership for investing in our commonwealth.”

Southern Coil Solutions will locate on over 9 acres in Warren County, with construction beginning as early as July and completion expected in December 2023. The project will include an up-to-120,000-square-foot facility that will house advanced automation systems and specialized machinery tailored for coil storage and handling. The facility will be designed to ensure optimal safety, security and efficiency throughout the storage and retrieval processes.

“The city of Bowling Green, Warren County, Gov. Beshear, the Tennessee Valley Authority and the Bowling Green Area Chamber of Commerce have made this an easy decision,” said Southern Coil Solutions CEO Mark Loik. “Southern Coil Solutions will continually invest in cutting-edge technology, expanding our infrastructure and developing strong partnerships to become a trusted name in the industry. We look forward to being a part of the community’s economic prosperity by generating employment opportunities.”

Established in 2023, Southern Coil Solutions is a leading automated storage warehousing company specializing in the handling of aluminum and steel coils. With a strong presence in the automotive, food/beverage and battery industries, the company provides efficient and reliable storage solutions for businesses across various sectors. A state-of-the-art facility and advanced automation technology enable Southern Coil Solutions to offer superior coil-handling services to meet the diverse needs of its clients. 

This project adds to Kentucky’s growing metals-related sector, which administration-to-date has seen over 70 private-sector new-location and expansion projects that are expected to create more than 3,200 full-time jobs with nearly $2.6 billion in new investments.

Warren County Judge/Executive Doug Gorman expressed excitement for the project: “We are thrilled about this new investment in the Kentucky Transpark. It’s always a good day when we celebrate new additions to our economy and when the Transpark welcomes a new tenant.”

Last year, Gov. Beshear announced the city of Bowling Green and its officials will implement upgrades at the Kentucky Transpark behind a $1 million investment, building on one of the fastest-growing industrial parks in Kentucky.

Bowling Green Mayor Todd Alcott spoke on the benefits of Southern Coil Solutions locating in the area: “The Kentucky Transpark is centrally located and a great location for meeting logistics needs in the U.S. Within a day’s time, you can reach over two-thirds of the country’s population. Southern Coil Solutions’ future in our community and its market growth in the U.S. and the rest of North America is bright. And we are thrilled they chose Bowling Green as their new home.”

Bowling Green Area Chamber of Commerce president and CEO Ron Bunch welcomed the company to the region: “Southern Coil Solutions is a great example of entrepreneurial determination and success that has driven our community’s growth. South Central Kentucky is fortunate to be home to so many wonderful companies and we are excited to welcome another one to the fold. We look forward to their continued growth and success in the region across the globe.”

Southern Coil Solutions’ investment and planned job creation furthers recent economic momentum in the commonwealth.

Earlier this month, Gov. Beshear announced there are more than 2 million jobs filled in Kentucky – the most in state history – according to the U.S. Bureau of Labor Statistics in its federal survey of business establishments. And the Governor highlighted that 57,000 new jobs have been filled since the beginning of his administration.

The Governor recently announced that Kentucky set the record for the longest period with the lowest unemployment rates in state history. On May 18, Gov. Beshear announced that Kentucky set a new historic low unemployment rate of 3.7%, which is the lowest rate ever recorded in the commonwealth.

Since the beginning of his administration, Gov. Beshear has announced more than 860 private-sector new-location and expansion projects totaling $26.8 billion in announced investments.

The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 was $26.78 before benefits, the second-highest mark since 2010 and an 11.5% increase over the previous year.

The Governor also secured the best two-year period in state history for economic growth and announced the two largest economic development projects in state history. In September 2021, Gov. Beshear and leaders from Ford Motor Co. and SK Innovation celebrated a transformative $5.8 billion investment that will create 5,000 jobs in Hardin County. In April 2022, the Governor was joined by leadership at AESC toannounce a $2 billion investment that will create 2,000 jobs at the Transpark in Warren County. These announcements solidify Kentucky as the EV battery production capital of the United States.

That position was strengthened even further in May 2023, when the Governor and leaders at Toyota announced a $591 million investment across multiple projects as the company’s largest manufacturing operation in Georgetown introduces its first battery electric vehicle. Growth within the EV sector continued into June as Gov. Beshear joined INFAC North America to break ground on the company’s $53 million investment to support EV-related production in Campbellsville.

Over a two-month period this year, Kentucky secured two credit rating increases from major agencies. On May 12, Gov. Beshear announcedthat his administration obtained the first state-level credit rating upgrade in 13 years and the first-ever upgrade from Fitch Ratings. On June 29, Gov. Beshear announced the commonwealth received its first-ever rating increase from S&P Global Ratings.

Site Selection magazine recently placed Kentucky first in the South Central region and top-5 nationally in its 2023 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects. The publication also placed Kentucky second nationwide and first in the South Central region for its annual Governor’s Cup ranking for 2022, which recognizes state-level economic success based on capital investments.

Gov. Beshear’s administration is projected to post the four highest years of budget surpluses in Kentucky history, and the state’s rainy day fund has a record balance of $2.7 billion.

Gov. Beshear recently announced a new “Supply Kentucky” initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) last week preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $600,000 in tax incentives based on the company’s investment of over $27 million and annual targets of:

• Creation and maintenance of 30 Kentucky-resident, full-time jobs across 10 years; and
• Paying an average hourly wage of $30.87 including benefits across those jobs.

Additionally, KEDFA approved Southern Coil Solutions for up to $150,000 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.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.

In addition, Southern Coil Solutions can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

For more information on Southern Coil Solutions, visit SouthernCoilSolutions.com.

A detailed community profile for Warren County can be viewed here.

Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.

Read about other key updates, actions and information from Gov. Beshear and his administration at governor.ky.gov  and the Governor’s official social media accounts Facebook, Twitterand YouTube.

Original source can be found here.