For many companies that move operations to, or expand in, Kentucky, low energy costs are a major draw. Companies seeking to better their bottom line typically pay close attention to utility costs and how they impact a business expansion project.
California-based Ceradyne is one example of a company that realized a Kentucky location made good sense cost-wise, especially where energy needs were concerned.
Indeed, it was this low cost of energy that played an important role in Ceradyne’s decision to locate a 115,000 square foot manufacturing plant on 6 acres in the Lexington metro.
When the plant was purchased in 2003, Ceradyne company officials cited a 65 percent cut in electricity costs in Kentucky as compared with California.
Ceradyne develops, manufactures and markets advanced technical ceramic products and components for defense, industrial, automotive/diesel and commercial applications.
The Lexington plant manufactures lightweight ceramic body armor systems for U.S. military forces and silicon nitride technical ceramic components for diesel engines.
“This increase in manufacturing capacity and Kentucky’s competitive energy rates [will] allow Ceradyne to meet its growth projections and enhanced productivity objectives for both its defense and industrial markets,” said Joel Moskowitz, chairman and CEO of Ceradyne.
The company upgraded the facility last year.
A strong work force helped snare a project that resulted in a high-tech design and engineering center involving Belcan Engineering Group and Stratford, Conn.,-based Sikorsky Aircraft. Sikorsky designs, manufactures and services advanced helicopters for commercial, industrial and military uses.
In March 2005, officials marked the opening of the Engineering and Design Center for Sikorsky Aircraft at Belcan Engineering in Lexington.
Belcan performs targeted engineering-detailed design activities in support of projected growth in Sikorsky’s domestic and international development program requirements. About 300 employees work on the project.
Sikorsky’s process for selecting Kentucky, and subsequently Belcan, for the design center project was extremely rigorous, said Mark F. Miller, vice president of engineering and research for Sikorsky.
“We looked at all 50 states and really considered engineering costs, available talent, general cost of doing business and other considerations,” he said. “It boiled down to a handful of states that have the economic development programs, the local business conditions and climate, competitive wage structures, and the available pool of engineering talent. Kentucky was chosen because of exceedingly good scores across all of these attributes.”
For more than three years, Belcan has provided engineering services to Sikorsky with an offsite Engineering and Technology Development Center since achieving preferred supplier status for engineering services.
Belcan expressed confidence in its ability to achieve Sikorsky’s vision of excellence.
The company has partnered with the University of Kentucky’s College of Engineering to cultivate employment opportunities for graduates from the university.
“We have the highest confidence that with the intellectual talent available to us locally, we can build a design center that is able to meet the needs of Sikorsky Aircraft and other future customers,” said Phil Combs, CEO of Belcan Corp.
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