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NKY By the Numbers in 2012: 24 Projects, 5,949 Jobs, $721 Million in Sales

Northern Kentucky Tri‐County Economic Development Corporation (Tri‐ED) announced that in 2012, 24 companies announced new locations or expansions in the Boone, Campbell and Kenton County region and that 3,774 new jobs are projected as a result of these announcements. The organization honored 2012 expanding companies as the focus of its annual recognition event branded as Thoroughbreds.

“2012 was an excellent year in terms of the number of companies expanding or locating in Northern Kentucky,” said Gary Moore, Boone County Judge Executive and Tri‐ED Chairman. “It was an outstanding year in terms of jobs announced, with 3,774 direct jobs announced in 2012 – nearly triple what was announced in 2011 and ranking fourth highest in Tri‐ED’s 26 year history.”

On average, Tri‐ED attracts or facilitates the expansion of 22 companies in Boone, Campbell and Kenton counties. In 2012, 24 new primary industry companies announced expansions in Northern Kentucky with I2 new market entries and 12 existing companies announcing expansions and new jobs in the region.

“The momentum shifted in 2012 to an even split between new companies and existing companies announcing new jobs,” said Dan Tobergte, President and CEO of Tri‐ED. “In 2011, the majority of our gains came from our existing industry. Tri‐ED has a strong marketing and lead generation program and we didn’t sit still during the recession, we continued our efforts to bring new companies to the region and we’re seeing dividends from our outreach.”

Advanced manufacturing, office/tech, call center operations and e‐commerce/logistics were strong sectors in 2012. “Tri‐ED has worked to create a diverse, primary industry economy in Northern Kentucky,” added Tobergte. “That is evident in new companies, like California based i‐Herb and NorAm International Partners, Inc. out of Massachusetts, entering the market and existing companies like Citi, DHL and ZF Rubber & Plastics LLC expanding operations and adding jobs.”

The annual economic impact study of primary industry growth for 2012 conducted by Northern Kentucky University’s Center for Economic Analysis and Development (CEAD) shows total impact of the 24 projects as follows:

  Jobs Business Sales or Output Labor Income Value Added
Direct Effects 3,774 $447,185,336 $184,545,716 $280,293,163
NKY Indirect/Induced Effects 2,175 274,111,653 91,661,348 157,204,233
Total Impact on NKY 5,949 $721,296,989 $276,207,064 $437,497,396
Other Metro Indirect/Induced Effects 345 56,191,056 18,404,867 29,566,693
Total Impact on Cincinnati MSA 6,294 $777,488,045 $294,611,931 $467,064,089

In 2012, Tri‐ED launched a new initiative called NKY Boost, enhancing its existing Business Retention & Expansion (BR&E) program into a partnership effort with the region’s private businesses, local governments and regional allies.

Led by Wade Williams, Vice President BR&E, and Dustin Lester, Manager in partnership with community allies, more than 46 business retention interviews were conducted with a diverse group of local manufacturing, office, IT, distribution/logistics and entrepreneurial businesses to thank them for doing business in Northern Kentucky and to assist them in identifying growth opportunities and resolving any issues constraining their growth.

In honor of Duke Energy’s long standing support of economic development in Northern Kentucky, and specifically the start‐up funding provided to launch NKY Boost, Northern Kentucky Tri‐ED and Duke Energy will annually present the NKY Boost Ally Award. The award recognizes the support of an organization for NKY Boost and its exemplary service to Northern Kentucky businesses.

“Tri‐ED is pleased to recognize the Transit Authority of Northern Kentucky (TANK) as the first recipient of the NKY Boost Ally Award,” said Chairman Gary Moore. “TANK provides an invaluable service transporting workers throughout the region to many of Northern Kentucky’s major employers.”

Williams added that “TANK’s responsiveness and creativity to improvements in its service through NKY Boost, has enhanced Northern Kentucky’s attractiveness for businesses.”

24 companies announced new locations or expansions in Northern Kentucky in 2012:

ACB Recovery                                                    DHL Express (USA), Inc.                                 NorAm International Partners, Inc.                                             
AGC Automotive Americas Ellison Surface Technologies, Inc. P.L. Marketing, Inc.
A‐One Pallet Distributing, Inc. Elovations Services Group, LLC TBS Meat Distributors, Inc.
Applied Machine & Motion Control, Inc. (AM&MC) Harlow‐HRK Sales and Marketing, Inc. TIMCO Aviation Services
Balluff, Inc. iHerb Total Quality Logistics
Bonfiglioli USA L’Oréal USA UCI‐FRAM Group
CENGAGE Learning Mazak Corporation WestPack, LLC
Citi McLane Foodservice, Inc. ZF Rubber & Plastics LLC

ACB Recovery

ACB Recovery, an accounts receivable management company, is a merger between New York City‐based Plaza Associates, ACB American and United Recovery, a collection agency based in Covington, Kentucky. They have invested more than $2.5 million at its Northern Kentucky location, which included the addition of 18,000 square feet to its existing 25,000‐square‐foot facility, located at 4351 Winston Ave.

AGC Automotive Americas

AGC Automotive Americas, a wholly owned subsidiary of Asahi Glass Co. Ltd based in Tokyo, Japan, is an international automotive glass and glazing systems supplier, with two other operations in Kentucky. In 2012, AGC Automotive Americas expanded their operations at 2300 Litton Lane in Hebron, Kentucky and added 18 Kentucky resident jobs and invested $310,000 in our community.

A‐One Pallet Distributing, Inc.

A‐One Pallet Distributing, Inc. was started by Brian Bush and Bob Irvin in the summer of 1995. Brian and Bob have worked in the pallet industry since 1991 and had always worked together learning the business. Since then, the company has seen steady growth and investment in the wooden pallet industry. The company has recently located at 7435 Industrial Road in Florence, Kentucky. They have invested approximately $2.4 million in the community and anticipate hiring as many as 62 new Kentucky resident employees.

Applied Machine & Motion Control, Inc. (AM&MC)

Applied Machine & Motion Control is an engineering and wholesale sales company providing technical and product solutions for manufacturing automation and process automation to customers throughout Ohio, Kentucky, Indiana, Michigan, Western Pennsylvania, and West Virginia. AM&MC, founded in 1995, selected Park Hills, Kentucky to relocate their business from Lockland, Ohio, and purchased a 2,200 square foot building at 1491 Dixie Highway. AM&MC is making over $500,000 in capital investment in real estate and improvements. AM&MC employs 7 engineers and 4 sales and administrative staff, and plans to hire an additional 5‐10 employees over the next three years. AM&MC sells Robots, Vision Systems, Servos, Drives, CNCs, Machine and Motion Controls, Mechanical Components, Engineering, and Engineered Systems.

Balluff Inc.

Balluff is one of the world’s leading automation suppliers, providing innovative and practical sensing solutions for a wide range of applications and industries. Balluff specializes in delivering dependable, rugged products for industrial sensing, networking, and identification. Balluff, Inc. is the U.S. subsidiary of Balluff GmbH in Neuhausen, Germany. With over 90 years of sensor expertise, Balluff is a globally recognized partner in a wide variety of challenging automation applications. Balluff’s U.S. Headquarters, located in Independence Kentucky, is the final assembly, customer support, distribution, and training center for operations in the United States. Balluff Inc. opened its Northern Kentucky operation in 1983 and has been steadily growing over the past 30 years, with expansions in 1994 and 2001. The company expects to break ground in 2013 on its latest expansion.

Bonfiglioli USA

Bonfiglioli USA, a wholly‐owned subsidiary of Bonfiglioli Riduttori S.p.A., is a leading designer and manufacturer of a complete range of gearmotors, drive systems and planetary gearboxes for a wide variety of applications in the industrial, off‐highway and renewable energy markets. Bonfiglioli is a global leader in power transmission and control, and in solutions that transform solar and wind energy in power. Bonfiglioli USA is located at 3541 Hargrave Drive in Boone County, Kentucky. The Company continues to experience growth and add Kentucky resident jobs.

CENGAGE Learning

Headquartered in Stamford, Connecticut, Cengage Learning is a leading provider of innovative teaching, learning and research solutions for the academic, professional and library markets worldwide. The company's products and services are designed to foster academic excellence and professional development, increase student engagement, improve learning outcomes and deliver authoritative information to people whenever and wherever they need it. With annual revenues of approximately $2 billion, the company has 5,500 employees with operations in more than 20 countries around the world. Cengage has been operating in Northern Kentucky for over 12 years at 10650 Toebben Drive, where they renewed their lease in 2012. This location, which is approximately 830,000 square feet of space, is one of the largest industrial renewals in the Greater Cincinnati region. This lease renewal retained approximately 700 Kentucky resident jobs.

Citi

Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. The global banking giant, which issues credit cards and provides numerous other financial services and products, has expanded its call center in Boone County, Kentucky to about 2,200 employees. The center now services all of Citi’s North American consumer banking businesses and products, including Citi‐branded credit cards and private‐label cards managed by Citi; mortgages; and retail banking, with the addition of some of Citi’s mortgage work over the past several months.

DHL Express (USA), Inc.

DHL Express is a division of Deutsche Post DHL, the world's largest logistics company operating around the world. Founded in San Francisco more than 40 years ago by 3 budding entrepreneurs ‐ Adrian Dalsey, Larry Hillblom and Robert Lynn ‐ DHL has continued to expand at a phenomenal rate. Back In 1969, DHL took its first small steps in building for the future by personally shipping papers by airplane from San Francisco to Honolulu. The years passed and the DHL network grew ever larger, gradually reaching out to new customers in every corner of the world. At the same time, the marketplace developed and became more complex, so DHL adapted to meet the changing needs of its customers ‐ both at global and local level. Today, DHL's international network links more than 220 countries and territories worldwide. Here in the U.S., DHL Express has a singular focus on international and is perfectly positioned to meet the growing demands of U.S. exporters and importers. In addition to express services, DHL also offers unparalleled expertise in air and ocean freight, overland transport, contract logistics solutions as well as international mail services. In 2012, DHL Express inaugurated a new 193,000 square foot sorting facility in Boone County, Kentucky at the CVG airport. The $47 million expansion helped bring additional jobs to the local community. DHL currently employs 2,280 staffers at its hub at CVG.

Ellison Surface Technologies, Inc.

Founded in 1986 in Hebron, Kentucky, Ellison Surface Technologies, Inc. is an industry‐leading expert provider of thermal spray coating and special processes to many of the world’s largest manufacturers of aircraft engine and industrial gas turbines. Headquartered in Mason, Ohio, a northern suburbs of Cincinnati, Ellison Surface Technologies operates coating facilities across the United States and in Canada. Ellison Surface Technologies, Inc. is expanding their Hebron facility at 1780 Anderson Boulevard in Boone County, Kentucky. This expansion project includes investment of over $9 million, adding approximately 22,000 square feet to their existing facility and is expected to create in excess of 50 new Kentucky resident jobs in the community.

Elovations Services Group, LLC

Elovations Services Group, a spinoff from NorAm International, leased space for a distribution start‐up in Boone County, Kentucky. Elovations Services Group will partner with e‐commerce companies to create a friction‐free global shipping platform with a high degree of item level tracking and successful deliveries. The company has decided to invest $13.7 million in the community and anticipates creating as many as 696 new Kentucky resident jobs.

Harlow‐HRK Sales and Marketing, Inc.

Harlow‐HRK Sales & Marketing and P.L. Marketing, Inc. will jointly locate in Class A office space in One Riverfront Place in Newport, Kentucky where they will occupy approximately 60,000 square feet. Together, the two merchandising companies are bringing 77 jobs and more than $4 million in annual payroll to the City of Newport. Both companies focus on sales, marketing and merchandising in the grocery industry.

iHerb

iHerb was founded in 1996 to initially promote the benefits of St. John's Wort. Over the past several years iHerb has experienced tremendous growth as it has become the leading online retailer of nutritional supplements and other natural and organic products around the world. Based in Moreno Valley, CA, iHerb.com currently operates from a 360,000 square‐foot, air‐conditioned warehouse and is excited to be expanding to a 211,000 square foot one‐of‐a‐kind, fully‐automated facility in Hebron, Kentucky. iHerb will be initially investing over $25,000,000 into its Kentucky operation and expects to eventually provide 300 plus jobs for Kentucky residents. iHerb's new warehouse will be located in the Park West International development at 1795 World Wide Blvd., Hebron, Kentucky.

L’Oréal USA

L'Oréal USA, headquartered in New York City, with 2011 sales of over $5.1 billion and 9,800 employees, is a whollyowned subsidiary of L'Oréal SA, the world’s leading beauty company. L'Oréal's impressive portfolio of brands includes Lancôme, Giorgio Armani Beauty, Yves Saint Laurent Beauté, Viktor & Rolf, Diesel, Cacharel, Clarisonic, L'Oréal Paris, Garnier, Vichy, La Roche‐Posay, L'Oréal Professionnel, Kérastase and Shu Uemura Art of Hair, Maybelline New York, Soft‐Sheen.Carson, Kiehl’s Since 1851, Ralph Lauren Fragrances, Essie Cosmetics, Redken 5th Avenue NYC, Matrix, Mizani, Pureology, SkinCeuticals and Dermablend. In 2012, L’Oréal USA announced the expansion of their Northern Kentucky plant which will include renovations to the existing plant, new construction and the purchase of new equipment. Located at 7080 New Buffington Road in Kenton County Kentucky. The plant currently employs over two hundred full‐time workers that produce over180 million units of shampoo, conditioner, and styling products for the Garnier Fructis, L’Oréal Paris, Soft Sheen‐Carson, Redken, and Matrix, brands each year. The company estimates that the 110,000 square foot plant expansion will create more than 200 new jobs over the next three years.

Mazak Corporation

Mazak Corporation, with international headquarters in Japan, develops, designs, and manufactures CNC turning centers, vertical machining centers, horizontal machining centers, Multi‐Tasking machines, 5‐axis machines, and a successful line of NEXUS machine tools in three facilities in Northern Kentucky. Mazak is expanding their technology center more than a third of the size, which equates to approximately 31,000 square feet. This takes their overall campus space to 800,000 square feet in total, making them one of the largest machine tool factories in the country. This expansion to their National Technology Center acts as the hub for their eight regional technology centers. They have invested approximately $5.2 million to make this possible.

McLane Foodservice, Inc.

McLane Company was founded in 1894 by Robert McLane in Cameron, Texas. McLane Foodservice, Inc.is a wholly owned division of McLane Company. The company provides supply chain services to convenience stores, mass merchants, drug stores and military locations as well as thousands of chain restaurants, throughout the United States. McLane Foodservice, Inc has begun construction of a 319,000 square foot regional distribution facility in Boone County, Kentucky. The company has recently made the investment of $34.3 million in the community to build their new facility. In addition, the company will add another 28 new Kentucky resident jobs to their existing 294 person workforce.

NorAm International Partners, Inc.

NorAm International, founded by Michael and Kellie DuGally in 2006, deals in used, overstock and wholesale consumer products, electronics, DVDs, CDs, and video games. They process about 40,000 items per day, climbing to 70,000 during busy times, such as textbook buying season. They are a third party seller for Amazon.com, in which they buy, process, repackage and resell the items from customers. NorAm International began relocating from New Hampshire in April 2012, to their 100,000 square foot facility on Aviation Boulevard in Hebron, Kentucky, where they spent $3.5 million in the community and will create approximately 300 Kentucky resident jobs in three years.

P.L. Marketing, Inc.

Harlow‐HRK Sales & Marketing and P.L. Marketing, Inc. will jointly locate in Class A office space in One Riverfront Place in Newport, Kentucky where they will occupy approximately 60,000 square feet. Together, the two merchandising companies are bringing 77 jobs and more than $4 million in annual payroll to the City of Newport. Both companies focus on sales, marketing and merchandising in the grocery industry.

TBS Meat Distributors, Inc.

Presently, TBS Meat Distributors, Inc. focuses its business on two distinct segments of the market. The bulk of TBS customers are butcher shops and meat specialty stores that are focused on premium cuts of meat. TBS focuses on customer service where the personal relationship between the buyer and the seller is still very important in the day‐to‐day business. TBS located its 15,000 square foot operation to 2825 Crescent Springs Pike, Erlanger, KY as part of the Cold Chain Integrity’s umbrellas of services in the cold storage space arena.

TIMCO Aviation Services

TIMCO Aviation Services, based in Greensboro, N.C., is one of the largest, independent aircraft maintenance, repair and overhaul (MRO) providers, supporting global aircraft operators and owners with comprehensive aircraft care services including base maintenance from four multi‐hangar locations in the U.S. The company’s TIMCO Aerosystems division provides interiors design, engineering, certification and integration services, as well as manufactured products including the FeatherWeight™ line of galleys, lavs and passenger seating. The TIMCO Engine Center provides engine MRO and TIMCO LineCare™ delivers line maintenance and cabin care at 22 airports across the U.S. TIMCO Aviation Services announced in 2012 an asset purchase from a previous aircraft maintenance, repair and overhaul (MRO) operation at Cincinnati‐Northern Kentucky International Airport (CVG). TIMCO executed a lease agreement with CVG and will use the facility to serve regional aircraft operators.

Total Quality Logistics

Total Quality Logistics is the nation's third largest freight brokerage firm with more than 1,700 employees in eight states: Ohio, Illinois, Colorado, South Carolina, North Carolina, Florida, Indiana, and Kentucky. Headquartered in Cincinnati, Ohio, where the company was founded in 1997, TQL arranges full truckload transportation for more than 7,000 customers across the U.S. and Canada. The company was recently named a "Top Workplace" as well as one of the “Healthiest Employers of Greater Cincinnati.” TQL opened a Northern Kentucky location in the Circleport Business Park and the company continues to experience growth and hire Kentucky residents. The company, with sales of more than $1 billion in 2011, marks the new NKY office as its eleventh satellite location.

UCI‐FRAM Group

UCI‐FRAM Group, a part of New Zealand‐based Rank Group Limited, is among North America’s largest and most diversified companies servicing the vehicle replacement parts and car care market inclusive of leading businesses like Airtex Products, ASC industries, Autolite, FRAM Filtration, Holts, Preston, and Wells Vehicle Electronics. The group operates though a global network of manufacturing facilities, distribution centers and offices located throughout the United States, Canada, Mexico, Europe and China. The company shifted additional distribution operations to its highly automated 710,000 square foot Hebron, KY FRAM Filtration plant in 2012 citing the ability to better support customer needs and future growth. The move created 120 new jobs for Northern Kentucky.

WestPack, LLC

Westpack, LLC, a bottle decorating and packaging company based in Russia, announced plans to establish manufacturing operations in Covington, Kentucky. The project will create 63 new, full‐time jobs and will represent a $4.49 million investment in the Commonwealth. Westpack, LLC is a new expansion of UniPack Group, a full service glass container decorating and packaging company serving the alcohol beverage industry since 1995. The Covington location will be at a 126,000‐square‐foot existing facility on West 43rd Street. At the Covington plant, Westpack will provide decoration and labeling of glass and PET bottles, for wine & spirit, food & beverage, cosmetic and tableware industries. The facility will be well equipped with latest technology to provide complete array of decoration and labeling that will include: Screen Printing, Etching/Frosting, electrostatic and liquid organic Spray Coating, automated Hot Stamping, PSL and Decal application.

ZF Rubber & Plastics LLC

ZF Rubber & Plastics LLC, which began operations in Hebron in 1994, is one of ZF Friedrichshafen AG’s (ZF) 121 global production facilities. German‐owned ZF, a leading automotive supplier for driveline and chassis technology with a presence in 27 countries, has nearly 71,500 employees worldwide and is among the world’s top 10 largest automotive suppliers. ZF Rubber & Plastics LLC is expanding their existing manufacturing facility at 1102 Aviation Boulevard in Boone County, Kentucky. This expansion project will allow for the company to invest $17.9 million in the community, adding approximately 56,000 square feet to their existing facility and creating 60 new Kentucky resident jobs.

From NKY Tri-Ed

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