By Pam Wright
The Advocate-Messenger
DANVILLE, Ky. — Intelligrated Systems will create up to 50 new jobs in Danville with the $1.6 million projected expansion of its manufacturing operations on Lebanon Road.
The Kentucky Economic Development Financial Authority gave preliminary approval Thursday for a $1-million financial incentive package for the Ohio-based company’s expansion project, according to Jody Lassiter, president and CEO of Danville-Boyle County Economic Development Partnership.
Included in Intelligrated’s application for financial incentives was a letter of support, which was approved by Danville City Commission on Monday.
This comes as good news, Lassiter said, considering the company, which specializes in material handling automation and software engineering, nearly closed its doors in Danville and moved to Ohio in 2009 when FKI Logistix was acquired by Intelligrated. The move would have meant a loss of more than 240 jobs in Boyle County.
“This is a new lease on life for the local Intelligrated facility because, at one time, truthfully, we weren’t certain whether it was going to happen,” said Lassiter.
In 2006, FKI consolidated some of its operations in Kentucky, moving many jobs from its Dallas and Frederick, Maryland facilities to its Danville, Louisville and Cincinnati locations.
After Intelligrated acquired FKI in June 2009 for $40 million, it planned to consolidate its three factories into two by closing its West Chester, Ohio, facility.
However, union officials representing workers at the West Chester and London, Ohio, facilities struck a six-year deal with Intelligrated that made closing the Danville location a better option, Intelligrated CEO Chris Cole told The Cincinnati Enquirer at the time.
Lassiter said Kentucky and Ohio battled it out trying to lure the company with competing financial incentive packages.
With a $24-million financial incentive package from the state of Ohio that would have allowed it to retain 537 jobs and add 267 new ones at its Ohio facilities, Intelligrated determined it would be better to close Danville’s doors.
“Ultimately Ohio won the incentives battle,” said Lassiter of the 2009 decision. “The Louisville facilities were closed and a lot of the jobs and several of the product lines that were here moved to the West Chester and London facilities.”
Lassiter said Intelligrated planned a three-phase shutdown of the Danville facility, and while many jobs were cut, the company never completely shut its doors for good.
“Ultimately, they did not close this facility because there were some opportunities to do some specialty products that didn’t really fit the facilities in Ohio,” said Lassiter. “This (facility) has always had a heavy conveyor focus, which is why Intelligrated bought FKI Logistix in the first place. They were more focused on smaller conveyor systems.”
Employment at the Danville facility was significantly reduced in the years following the decision to pull out, leaving only about 50-60 jobs from the 240 employees who worked at FKI Logistix prior to the acquisition.
“However, after that time, employment started creeping back up because capacity had been met at the Ohio facilities. So business started flowing back this way and employment went back up to about 125,” said Lassiter. “With this new expansion we’ll add an additional 50 to that number.”
Lassiter said Intelligrated plans to enter into a partnership with another business and produce a new heavy conveyor product.
According to Lassiter, the next step in the process is to propose a local $250,000 incentive package in addition to the state’s $1 million. Lassiter said he doesn’t anticipate any roadblocks to a local incentive package.
“That’s a significant incentive for what is a $1.6 million capital investment,” he said. “But then you’ve got that payroll in the neighborhood of around $2 million when the 50 jobs are up.”
Boyle County Judge Executive Harold McKinney applauded Intelligrated’s decision to stay and expand in Boyle County.
“Intelligrated is heir to a long and respected line of conveyor systems manufacturers in Boyle County, employing generations of highly-skilled, hard-working men and women from our community and region,” said McKinney. “On behalf of the Fiscal Court, I commend Intelligrated for choosing to reinvest in its Danville facility and its productive local workforce.”
Mayor Bernie Hunstad offered his congratulations to Lassiter and the EDP Wednesday for its role in Intelligrated’s expansion plans.
“I want to congratulate Jody and the entire team on Intelligrated,” said Hunstad. “This is very good news for the city and county.”
John Albright, president of the Danville-Boyle County Industrial Foundation, commended Lassiter’s behind-the-scenes efforts in working with Intelligrated to secure more jobs in the county.
“A lot of people don’t realize how persistent, diligent and passionate Jody is on an effort like this and how much patience is required,” said Albright. “Jody remained persistent over the past three or so years and kept reminding them that they had a pretty productive work force right here in Danville and they could do the specialty work they needed right here.”
(This article appeared in the Aug. 31, 2014 issue of The Advocate-Messenger.)
By Pam WrightThe Advocate-Messenger