Material Handling Systems Inc. (MHS) will open a new manufacturing facility in Bowling Green, Kentucky, after the state approved a tax incentive package for the project, the material handling automation systems provider said today.
The Kentucky Economic Development Finance Authority (KEDFA) this week granted preliminary approval of a 10-year agreement that can provide up to $2.5 million in tax incentives, the company said. In turn, MHS plans to invest $7.6 million in the new facility, which will create 200 new full-time jobs, the Mt. Washington, Kentucky-based company said.
MHS plans to use the 181,000-square-foot building to build steel structures for conveyor and sortation systems, in response to growing needs from customers who are experiencing peak demand levels, MHS CEO Scott McReynolds said in a release.
The announcement comes just two weeks after MHS announced plans to acquire Michigan-based TGW U.S. Conveyors, formerly known as Ermanco Inc. That transaction is expected to close mid-February and is expected to help MHS expand its ability to serve the fast-growing e-commerce industry.
“Kentucky’s distribution and logistics sector – and the industries that support it – have played a vital role in our state’s ability to weather the storm of the past 10 months and position the state for future success,” Kentucky Gov. Andy Beshear said in a release. “As we build back stronger, manufacturers like Material Handling Systems are key to Kentucky’s continued growth. By combining advanced technology with precision manufacturing, MHS enables logistics companies to serve the world. I welcome this great new project and the new jobs this Kentucky-grown success story will create.”