All posts by Matt Ellis

Auto Parts Maker DAE-IL Breaks Ground on 120-Job Facility in Murray

Gov. Matt Bevin today congratulated leaders of South Korea’s DAE-IL Corp. and the Murray community as officials broke ground for the company’s $50 million, 120-job automotive parts plant in West Kentucky.

“We are grateful for DAE-IL’s decision to build its first US manufacturing facility here in the commonwealth, and we congratulate them on starting construction in Murray,” Gov. Bevin said. “Kentucky has a proven track record of successfully attracting and integrating businesses into our economy, and our relationship with another South Korean company set the stage for this opportunity. DAE-IL’s significant investment will create great jobs for citizens of Calloway County and West Kentucky, and we are confident that they will thrive and grow in the commonwealth.”

Company leaders expect the 295,000-square-foot plant, being built in the Murray-West Industrial Park, to open in May 2019. Employees at the new facility will manufacture automotive transmission gears.

“We are very happy and excited to be in Murray. We would like to thank everyone that has played a part in this,” said DAE-IL President and CEO Johnny Kim. “They have made us feel very welcomed here. We look forward to a long, successful partnership with the community.”

Founded in 1976 and headquartered in Ulsan, South Korea, DAE-IL Corp. manufactures and sells powertrain parts for automotive, heavy equipment and motorcycles. Its products include gears, car transmission and engine parts, heavy equipment products – such as transaxles, drive axles and transmission and excavator products – and motorcycle transmission and engine products. The company’s primary export markets include the US, China, Europe and Japan.

DAE-IL joins four other South Korean owned companies in Kentucky, which already employ about 400 people. The state’s automotive industry includes 522 facilities employing more than 100,000 people. Kentucky’s gateway position between the automotive hotbeds of the US Midwest and South make it a top location for parts production, component manufacturing and vehicle assembly.

Sen. Stan Humphries, of Cadiz, expressed gratitude for the company’s arrival to Calloway County.

“It gives me great pleasure to welcome DAE-IL Corp.’s first US manufacturing facility to Murray,” Sen. Humphries said. “This $50 million facility that looks to create 120 new Kentucky jobs is huge for our region. I want to congratulate and thank DAE-IL for choosing Murray for their new facility, and thanks to the Cabinet for Economic Development for helping make this project possible.”

Rep. Kenny Imes, of Murray, thanked the company and economic developers who made the project happen.

“The addition to Murray of the first US manufacturing facility for DAE-IL will reap huge rewards for Kentuckians in the entire region,” Rep. Imes said. “A $50 million shot in the arm for our economy and 120 new jobs in the booming auto industry are huge news, and I commend everybody involved in making this happen. Western Kentucky is on the right track to surge into future success.”

Calloway County Judge-Executive Larry Elkins said the nature of the positions being made available at DAE-IL will greatly benefit the local workforce.

“Both I and the fiscal court want to express how pleased we are to see this project come to Calloway County,” Judge-Executive Elkins said. “Creating jobs that are high tech and with good pay supports families and makes our community a great place to live. Not only will this company provide production jobs but there will be opportunities for engineers, technicians and other skilled professionals.”

Murray Mayor Jack Rose acknowledged the group effort necessary to make a project such as this possible.

“This is indeed a great day for Murray and Calloway County. The EDC has been working on this with the Cabinet for Economic Development and TVA for quite some time, and it is great to see everything come together,” Mayor Rose said. “We have a great team in place and we look forward to helping DAE-IL become an integral part of this community.”

Mark Manning, president of the Murray-Calloway Economic Development Corp., said the company has strong leadership that will be beneficial in integrating into the community.

“I have come to know Mr. Kim and his staff quite well over the last year and can say without hesitation that they are the kind of people who will fit well in Murray,” Manning said. “We will do our very best to help see that they are successful and happy here for many years.”

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in December 2017 preliminarily approved the company for tax incentives up to $3 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.

Additionally, KEDFA approved DAE-IL for up to $500,000 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.

In addition, DAE-IL 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. In fiscal year 2017, the Kentucky Skills Network provided training for more than 120,000 Kentuckians and 5,700 companies from a variety of industry sectors.

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

Latest Events

IoT Experience for Metalformers and Fabricators

2.28.18 Matt Ellis Leave a comment

Learn how colleagues are implementing IoT through case studies

The coming wave of digital manufacturing and plant-floor connectivity is here for metalformers and fabricators. MetalForming magazine, published by the Precision Metalforming Association (PMA), understands that the technology manufacturers use changes rapidly, especially within the Industrial Internet of Things. Because of these advances in technology, MetalForming magazine has created the Internet of Things Experience to educate manufacturers on how this technology can be leveraged to optimize your operations and plant-floor procedures.

With multiple case studies during the event, attendees will be given a roadmap for planning and executing an IoT plan. For example, the case study presented by Jim Finnerty, product manager, Wintriss Controls Group LLC, shows how metalformers utilize real-time gathering of production data to enable quick and decisive actions to generate a boost in overall equipment effectiveness (OEE) in the pressroom. It’s a terrific example of Industry 4.0 connectivity impacting the metalforming industry.

About Jim Finnerty
Jim has been with Wintriss Controls Group for more than 26 years and is responsible for new product development and sensor applications. He has helped metal stampers implement sensors and prevent die crashes for more than 35 years, and has published numerous articles about the metalforming industry. He also is an active member of the Precision Metalforming Association, serving on multiple committees and presenting at countless PMA technical seminars, FABTECH, and conferences around the world.

KAIA members can take advantage of the PMA-member rate (a 50% discount) by using the code IOTHALFOFF when registering!

KAIA Legislative Update - January 17, 2018

1.17.18 Matt Ellis Leave a comment

For the first time in history, Republican governor Matt Bevin presented his version of the biennial budget to both a Republican-controlled House and Senate this evening. Taking the position that government’s functions should be limited to protection of citizens, infrastructure and education, the Governor outlined his priorities for “getting Kentucky’s financial house in order.”

Highlights of the Address
1. The Budget fully funds pensions costs for state employees and the Teachers’ Retirement System’s funding request with a combined total of about $3.3B over the biennium. SEEK allocation funds are being maintained at $3,981 per pupil, but the Budget shifts responsibility for employee health insurance to local districts, who are also being asked to reduce administrative costs and use their reserve funds.

2. The Budget continues the investment in workforce development with another $100M bond pool for projects with local matching funds and private investment.

3. The Governor’s focus on public protection was evident in budget proposals that:

support the war on the state’s opioid crisis with $34M in additional funding;
fund 75 new prosecutors and 51 new public advocates to reduce legal case backlogs;
fund the replacement of aging state police equipment;
adding $24M for adding social workers and substantially increasing salaries; and
added a new program with about $11M to support foster children and adoption initiatives.

4. The Budget’s sizeable pension funding required cuts that including the elimination of 70 programs and 6.25% across the board cuts in state government, excepting items such as SEEK.

5. The Governor noted the recently approved 1115 Medicaid waiver as a reform that will enable cost management in the future.

6. The Governor announced a policy of managing the criminal justice system with the aim of needing to build no more prisons in the state.

7. Tax modernization was made a priority for 2018, though the likelihood of a special session remains unclear.

8. The Budget allocates $250M to the state Rainy Day Fund which has a current zero balance, about half of what is recommended by best practices.

SAVE THE DATE FOR KAIA’S LEGISLATIVE RECEPTION!
KAIA will host a legislative reception on Tuesday, February 13, 2018, from 6:00-8:00 PM in the Single Oak Room at the Buffalo Trace Distillery in Frankfort. Mark your calendars and plan to attend to meet key movers and shakers in the General Assembly, and network with other Automotive Industry members!

A Special Invitation for KAIA Members
Want to learn about the key issues and have an opportunity to get your questions answered and your voice heard? Our friends at the Kentucky Association of Manufacturers (KAM) have graciously extended an invitation to all KAIA members to join their weekly conference calls! Key information is included below. Join in and be a part of the conversation every Thursday at 4:00 PM EST!

Here is the call-in information for Thursday’s KAM Conversations, scheduled for 4:00 PM EST:

Dial-In Number: 877-746-4263
Participant Code: 0219774#

As always, if you have questions and/or need additional information, please do not hesitate to contact us!

Dave Tatman

KAIA Legislative Update

1.4.18 Matt Ellis Leave a comment

The Kentucky General Assembly returned this week for the 2018 Legislative Session. This Session is a 60-day session with the constitutional requirement that a biennial budget for the state must be enacted. With an expected special session not being called by the governor the latter part of 2017 to deal with the state’s ailing pension system, this complex and deeply controversial issue is expected to be the major focus for the next several weeks of Session.

Key Issues in 2018
The most important issue in an even numbered year Session is the passage of Kentucky’s Biennial Budget. Designing the 2018 Budget will be very difficult, considering the state’s revenue shortfall. Additionally, pension reform and slow revenue growth will make adoption of the Budget a significant challenge.
Other issues lawmakers are most likely to address include tax reform, (could be achieved later in 2018) as well as tools to fight the opioid epidemic, foster child law changes, and reforms to the workers’ compensation system.

Key Dates
   • January 2nd General Assembly Convenes
   • January 16th Governor’s Budget Address
   • January 30th Candidate Filing Deadline for November 2018 Races
   • April 13th Session adjourns sine die

Special Elections Scheduled for 2018
• February 20th – 49th House District (Bullitt County), vacated upon the death of Republican Dan Johnson
• February 27th – 89th House District (Clay, Laurel and Estill Counties), vacated upon the resignation of Republican Marie Rader.

A Special Invitation for KAIA Members
Want to learn about the key issues and have an opportunity to get your questions answered and your voice heard? Our friends at the Kentucky Association of Manufacturers (KAM) have graciously extended an invitation to all KAIA members to join their weekly conference calls! The first one is today, and the key information is included below. Join in and be a part of the conversation!

Here is the call-in information for today’s KAM Conversations, scheduled for 4:00 PM EST:

• Dial-In Number: 877-746-4263
• Participant Code: 0219774#

As always, if you have questions and/or need additional information, please do not hesitate to contact us!

Dave Tatman
Executive Director