Meggitt PLC, an international company specializing in high-performance components and sub-systems for the aerospace, defense and selected energy markets, plans to significantly increase its commercial and military aircraft carbon brake manufacturing capacity in Boyle County, creating up to 83 full-time jobs with a nearly $82.7 million investment.
Meggitt PLC
“Meggitt has played a significant role in the economy of the Boyle County community since locating there 13 years ago,” Gov. Matt Bevin said, in a release announcing the investment. “Currently employing more than 200 people, the company continues its strong upward trajectory within the commonwealth’s booming aerospace industry. We thank Meggitt for its commitment to Kentucky, and we look forward to many more years of continued growth.”
The project will allow the company to fulfill increasing orders following recent contract awards for braking systems. The facility already provides braking components for a number of customer programs, including the Airbus A220 and A321, as well as for Embraer, Gulfstream, Dassault and Bombardier. The new facility also will serve as an MRO hub to meet rising demand for aircraft maintenance. The 95,000-square-foot expansion would include new carbon furnaces plus ancillary equipment, as well as upgrades to existing machinery.
“Our order book has grown substantially in recent years and we are also witnessing a significant increase in carbon brake demand. It is a trend that is set to continue and this investment is an essential part of our future strategy,” said Brian Bondarenko, president of Meggitt Braking Systems. “Investing in Danville is a natural choice for us. We have been operating here for over 14 years and we continue to increase capacity. Danville gives us ready access to a rich talent pool and skilled employees, through this investment we hope to increase our workforce over time.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1.4 million in tax incentives based on the company’s investment of $82.68 million and annual targets of:
- Creation and maintenance of 83 Kentucky-resident, full-time jobs across 15 years
- Paying an average hourly wage of $18 including benefits across those jobs
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.
Additionally, KEDFA approved Meggitt for up to $350,000 in 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.