L’OREAL USA TO INVEST $42 MILLION IN NORTHERN KENTUCKY
(The following is a reformatted version of a press release issued by the Office of the Governor of the Commonwealth of Kentucky and received via e-mail. The release was confirmed by the sender.)
Gov. Beshear Announces L’Oréal USA to Invest $42 Million, Add More Than 200 Jobs in Northern Kentucky
Decision follows meetings between Gov. Beshear, L’Oréal in Paris this summer
FLORENCE, Ky. (Nov. 15, 2012) - Governor Steve Beshear today joined company and local officials in northern Kentucky to announce an expansion for global cosmetics and hair care manufacturer L’Oréal USA, which plans to add 211 jobs and invest more than $42 million in the Commonwealth.
Gov. Beshear met with L’Oréal officials in Paris during an economic development trip to Europe this summer to discuss the company’s Kentucky footprint and growth opportunities.
“L’Oréal is a household name, a global brand and a leader in its industry,” said Gov. Beshear. “We’re proud to have L’Oréal in northern Kentucky and excited to see more than 200 new jobs and a $42 million investment on the way. The Commonwealth’s partnership with L’Oréal demonstrates the quality of workforce in northern Kentucky, as well as the advantages that come with such an ideal location for business.”
L’Oréal USA is the largest wholly-owned subsidiary of L’Oréal SA, based in Paris, France. In business for more than a century, L’Oréal has built a portfolio of 27 international beauty brands. The company employs more than 68,000 people worldwide.
“L’Oréal’s business is growing globally, and the expansion will enable us to meet increased consumer demand for the popular hair care brands we are producing in Kentucky,” said Eric Wolff, plant manager. “The Florence plant is a center of manufacturing excellence for the L’Oréal Group, and the decision to expand US production here will result in significant economic benefit for Kentuckians.”
Kentucky’s foreign direct investment (FDI) continues to grow, as the Commonwealth is now home to more than 420 foreign-owned companies from 30 nations, employing nearly 78,000 people. European-owned companies represent a large portion of that FDI, with approximately 180 companies that employ nearly 26,600 people.
“We always welcome job-creators to our Commonwealth, but it is a special source of pride to know that our workers have made such a positive impression, that employers want to expand,” said Sen. John Schickel, of Union.
“L’Oréal’s decision to expand its operations is just the latest example of how our region has become an economic engine for the Commonwealth,” said Rep. Sal Santoro, of Florence. “This investment, as well as the more than 200 jobs, is also great news to our locally-owned small business owners, who will benefit from more people shopping in their stores and spending more money.”
“L’Oréal’s decision to expand their manufacturing operations in Kenton County is a great example of our existing companies’ commitment to northern Kentucky,” said Kenton County Judge-Executive Steve Arlinghaus, former chairman of Northern Kentucky Tri-ED’s board of directors. “This is great news that drives our economic development focus in northern Kentucky and the ongoing cohesive efforts of Tri-ED, the local community and the Commonwealth.”
“The announcement of L’Oréal’s expansion showcases the growing list of high quality manufacturing companies who have located and expanded in our area,” said Gary Moore, Boone County judge-executive and chairman of Northern Kentucky Tri-ED. “Northern Kentucky continues to be a natural location for manufacturing operations because of our low cost to operate, great workforce and logistical advantage. We thank L’Oréal for its ongoing confidence in northern Kentucky, and we will continue to meet their high expectations.”
To encourage the investment and job growth in Northern Kentucky, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives up to $5 million 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.
KEDFA also approved L’Oréal for tax benefits up to $800,000 through the Kentucky Enterprise Initiative Act, which allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing equipment.
For more information on L’Oréal, visit www.lorealusa.com.
Contact: Kerri Richardson 502.564.2611 502.330.6633
Terry Sebastian 502.564.2611 502.229.6130
Mandy Lambert 502.564.4886