Lexair Inc. has announced an $8.5 million investment to expand its manufacturing facility in Lexington.
The project will expand the company's existing facility located at 2025 Mercer Road by 35,000 square feet, increasing its operational space to more than 78,000 square feet. The additional space will accommodate manufacturing assets from Keystone, an Emerson brand, for the U.S. Navy markets, including intellectual property licenses for Emerson's trademarked technologies. The relocation of manufacturing for these products from Emerson's Pasadena, Texas, facility to Lexair's expanded factory in Lexington is expected to create 14 new jobs.
“A key aspect of building a strong economic foundation is having homegrown companies, ones founded and built right here in the commonwealth, find success and thrive,” said Kentucky Gov. Andy Beshear in announcing the expansion. “Lexair has been a staple in Kentucky’s manufacturing industry for over four decades, and I am thrilled to see them continue to grow and believe in what Kentucky has to offer.”
Founded in 1977, Lexair is a third-generation, family-owned manufacturer of machine tool products, commercial hydraulic and pneumatic control valves and a series of CO2 evacuation compressors and stainless valves for the U.S. Navy. The company has been involved in the naval and industrial markets for more than 45 years.
“We are going back to our roots with this acquisition,” said Lexair President Wes Allen. “We started as a defense contractor 45 years ago, and these products are very synergistic to our current operations. This expansion provides for the future viability of Lexair, benefiting its customers, employees and community for many years to come.”
In December, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved a 10-year incentive agreement with Lexair aimed at encouraging investment and job growth in the community. Under the Kentucky Business Investment program, this performance-based agreement can provide up to $300,000 in tax incentives based on the company's investment of over $8.5 million, as well as meeting annual targets, which include creating and sustaining 14 full-time jobs for Kentucky residents over the next 10 years, with an average hourly wage of $41.97, inclusive of benefits.
If the company meets its annual targets over the agreement term, it can be eligible to retain a portion of the new tax revenue generated. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, Lexair 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.
“Lexair is a growing family business that plays an important role in the defense of our country,” said Lexington Mayor Linda Gorton. “I have visited their shop, and it is clearly a great place to work. Congratulations, Lexair. We appreciate the good manufacturing jobs you bring to our city.”