If you read the headlines about financial incentives, you would think that that they were reserved for only the largest companies. Nothing could be farther from the truth.

In fact, most of the incentives offered through state and local economic development organizations are targeted at small- to mid-sized companies, and the reason is simple - that's where the growth is.

Kentucky is an example of what smaller companies can expect in the way of assistance.

In early December, Ahlstrom Corp.'s FiberComposites division dedicated its new 17,000 square foot facility in Madisonville, Ky. The facility, which will house administration offices and R&D laboratories, is the final segment of an 18-month expansion program.

The Madisonville plant will manufacture engine filtration products for both domestic and international markets. The expansion follows the closure and consolidation to Kentucky of Ahlstrom's Chattanooga, Tenn., plant in 2002.

"These new offices and R&D laboratory will allow us to consolidate our technical and administrative offices with the mill, improving our overall efficiency and customer service," said Herman Moore, vice president for FiberComposites engine filtration manufacturing.

Ahlstrom, with worldwide sales of $1.7 billion, is headquartered in Helsinki, Finland. The 150-year old company employs about 6,700 people in facilities in more than 20 countries on five continents.

As part of the project, Ahlstrom received preliminary tax credit approval under the Kentucky Rural Economic Development Act, a program aimed at increasing manufacturing employment in the state.

Injection Molder Opens Plant

This past summer, Rexam Closures & Containers opened a 190,000 square foot, state-of-the-art manufacturing facility in Madisonville.

The $30 million facility is among the most advanced injection molding plants in the world, with fully automated production lines and use of white room technology to guarantee adherence to the highest cleanliness and sanitation guidelines, according to Clas Nilstoft, president and division director of Rexam.

Rexam now has more than 1,000 molding machines in global locations, placing it among the top closure manufacturers in the world.

"We have doubled our size in the past 10 years and will continuously look for ways to grow and improve," Nilstoft said.

Rexam is one of the world's top five consumer packaging groups and the world's No. 1 beverage can maker.

In November, Asahi Forge of America Corp. announced its intention to locate its first major manufacturing facility in the United States in Richmond, Ky. The 60-year-old Japanese company specializes in press forging for the automotive industry.

The proposed $19 million project includes construction of a 65,000 square foot building at the Richmond Auto Parts Technology site and the purchase of manufacturing equipment.

Asahi received preliminary approval from the Kentucky Economic Development Finance Authority for tax credits under the Kentucky Industrial Development Act, an incentive program aimed at increasing manufacturing employment in the state.

Another Japanese auto supply manufacturer, Waltex Inc. recently announced that it will build a 20,000 square foot facility in Bowling Green.

Waltex, which opened a similar facility in Walton, Ky., manufactures multi spot-welders, robotic welding systems integration, weld fixturing and material handling systems.

"The strategic location, the site and the work force all exceeded our criteria for establishing our second plant here in Kentucky," said Koichi Kimura, chairman of Waltex Inc, a subsidiary of Toyo Denyo Co.

Not all manufacturing companies coming to Kentucky are coming from overseas.

The Pella Corp. a manufacturer of windows and doors headquartered in Pella, Iowa, located a new manufacturing facility in Murray. Pella will lease/purchase about 733,000 square feet of the former Mattel facility.

In addition to its headquarters, Pella operates five facilities in Iowa, two in Illinois, and one each in Pennsylvania, Minnesota, Oregon, Ohio and, now, Kentucky.

Pella anticipates the creation of 170 full time jobs in two years, with the potential to create up to 500 subsequent years.

FACTS & CONTACTS

State: Kentucky

DEMOGRAPHY AND ECONOMY

Population: 4 million

Capital: Frankfort

Three Largest Cities: Louisville, 256,231; Lexington-Fayette, 260,512; Owensboro, 54,067

GSP: $118 billion

Per Capita Income: $25,057 ('01)

Percentage of Private Manufacturing Labor Force Organized: 23.4%

Right to Work State: No

Unemployment Rate: 5.2% (Sept. '02)

Average Hourly Manufacturing Wage: $15.34 ('01)

Population Age 25 and Over With Bachelor's Degree or More: Louisville, 24.8%; Lexington-Fayette, 35.6%; Owensboro, 17%

Corporate Income Tax Rate: 4 to 8.25%

Primary Industries: Transportation, industrial machinery, automotive parts and accessories, food, electric and electronic equipment, coal mining, tobacco, primary metals

Targeted Industries: Machinery and equipment, automotive parts and accessories, rubber and plastics products, metal fabrication, regional and district offices and headquarters operations, pharmaceutical/biotech, Internet/e-commerce/tech support

BUSINESS ASSISTANCE

Worker Training Programs: Bluegrass State Skills Corp., Skills Training Investment Credit and Grant-In-Aid

Enterprise Zones: 10

Foreign Trade Zones: 2 - Louisville, Erlanger

FOR MORE INFORMATION CONTACT

Marvin E. Strong, Jr., Kentucky Cabinet for Economic Development, Capital Plaza Tower, 24th Floor, 500 Mero St., Frankfort, KY 40601, (502) 564-7670, fax (502) 564-1535, Web: www.thinkkentucky.com