Rivian To Establish Remanufacturing Facility in Shepherdsville With $10 Million Investment, Creating 218 Full-Time Jobs
Project will upgrade company?s current operation in Bullitt County to add remanufacturing capabilities to support electric trucks
FRANKFORT, Ky. (April 27, 2023) ? Today, Gov. Andy Beshear announced continued momentum within the state?s manufacturing and electric vehicle industries as leaders at EV-maker Rivian announced they will invest $10 million to establish a remanufacturing facility in Bullitt County, creating 218 full-time, quality jobs.
?Kentucky?s manufacturing and EV industries have seen unprecedented growth recently,? said Gov. Beshear. ?Continued investment in our key industries is critical for our immediate and long-term economic success. Rivian is an outstanding company that has been a major player in our state?s manufacturing and EV sectors, and this expansion is an exciting next step for the company here in the commonwealth. I look forward to their continued success here.?
Rivian currently stocks replacement parts at an existing 326,000-square-foot facility in Shepherdsville. This project will see the company improve and update the existing operation to establish a robust remanufacturing facility to support the warranty, repair and service footprint of the company?s EV trucks. The investment will help expand the capability and capacity of this existing site to remanufacture critical components such as electrical hardware, drive units and battery systems.
?We?re thrilled to be working with the State of Kentucky to help develop and expand Rivian?s first facility within the state," said Jimmy Knauf, Rivian?s executive vice president of facilities. ?Our new site in Shepherdsville will support multiple business-critical functions for Rivian and help bring good-paying jobs and training for Kentuckians in the region.?
Founded in 2009, Rivian designs, develops, manufactures and supports electric trucks, SUVs and commercial vehicles, including the Rivian R1T pickup, named 2022 MotorTrend Truck of the Year. The company employs over 14,000 people and operates its principal manufacturing facility in Normal, Illinois.
Rivian?s investment continues to solidify Kentucky?s position as a leader within the burgeoning EV sector, with significant investment throughout the past three years. Since June 2020, the commonwealth has seen over $10.6 billion in EV-related investments, with approximately 10,000 full-time jobs announced.
Bullitt County Judge/Executive Jerry Summers looks forward to a long and successful partnership between the company and community.
?We are excited about the growth and expansion of Rivian,? said Judge Summers. ?This project is a true asset to Bullitt County and the City of Shepherdsville. The employment opportunities and the services they bring are quite unique and much needed. I look forward to a long partnership with them as valued community members.?
Jos? Cubero, Mayor of Shepherdsville, highlighted the job opportunities and growth potential that this investment will bring to Shepherdsville.
?We are excited to hear one of our business partners is going to be growing here in the
City of Shepherdsville,? said Mayor Cubero. ?It?s an honor that they believe in our community to offer new opportunities with competitive wages. As we invest in Shepherdsville, it?s nice to know Rivian can see growth potential as well.?
Bob Fouts, executive director of the Bullitt County Economic Development Authority, is excited to work with the company and welcomes them to Shepherdsville. ?
?We are thrilled to have Rivian choose to locate its high-paying remanufacturing Center of Excellence in its electric vehicle distribution facility in Shepherdsville,? said Fouts. ?We welcome them to our business community and will work closely with them to make their location a success.?
Rivian?s investment and planned job creation furthers recent economic momentum in the commonwealth, as the state builds back stronger from the effects of the pandemic.
Since the beginning of his administration, Gov. Beshear has announced the creation of 46,000 full-time jobs and more than 850 private-sector new-location and expansion projects totaling $25.9 billion in announced investments.
The Governor has now secured the best two-year period in state history for economic growth.
In 2021, the commonwealth shattered every economic development record in the books. Private-sector new-location and expansion announcements included a record $11.2 billion in total planned investment and commitments to create a record 18,000-plus full-time jobs across the coming years.
That momentum continued strongly into 2022 with 248 new-location and expansion announcements totaling 16,000 full-time jobs behind nearly $10.5 billion in new investment.
The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 was $26.78 before benefits, the second-highest mark since 2010 and an 11.5% increase over the previous year.
Gov. Beshear also announced the two largest economic development projects in state history. In September 2021, Gov. Beshear and leaders from Ford Motor Co. and SK Innovation celebrated a transformative $5.8 billion investment that will create 5,000 jobs in Hardin County. And in April 2022, the Governor was joined by leadership at Envision AESC to announce a $2 billion investment that will create 2,000 jobs in Warren County. These announcements solidify Kentucky as the EV battery production capital of the United States.
Kentucky?s success has been noted by both S&P Global Ratings and Fitch Ratings, which have upgraded the state?s financial outlook to positive in recognition of the commonwealth?s surging economy.
Site Selection magazine placed Kentucky second nationwide and first in the South Central region for its annual Governor?s Cup ranking for 2022, which recognizes state-level economic success based on capital investments.
Gov. Beshear?s administration is projected to post the four highest years of budget surpluses in Kentucky history, and the state?s rainy-day fund has a record balance of $2.7 billion.
Gov. Beshear recently announced a new ?Supply Kentucky? initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.
The Governor also recently announced that Kentucky set the record for the longest period with the lowest unemployment rates in state history. Over the past 15 months, the rate has been between 3.8%, the lowest rate ever recorded, and 4%, marking the longest period with the lowest unemployment rates in state history. Kentucky has now achieved a 3.8% unemployment rate during four months since the beginning of 2022.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 10-year incentive agreement with the Rivian under the Kentucky Business Investment program. The performance-based agreement can provide tax incentives based on the company?s investment of $10 million and annual job and wage targets.
Additionally, KEDFA approved Rivian for 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.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, Rivian can receive resources from Kentucky?s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
For more information on Rivian, visit rivian.com.
A detailed community profile for Bullitt County can be viewed here.
Information on Kentucky?s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.
Read about other key updates, actions and information from Gov. Beshear and his administration at?governor.ky.gov,?kycovid19.ky.gov?and the Governor?s official social media accounts?Facebook,?Twitter?and?YouTube.
###
|
