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GOVERNOR BESHEAR ANNOUNCES FERUS CORP. TO LOCATE NEW LIQUID NITROGEN FACILITY IN LETCHER COUNTY

June 23, 2010

 

 

Governor Beshear Announces Ferus Corp. to Locate New Liquid Nitrogen Facility in Letcher County

 

 $30.8 million investment in facilities to create 34 new jobs

 

JENKINS, Ky. (June 23, 2010) – Gov. Steve Beshear today joined company and community officials in Jenkins for a groundbreaking-ceremony to commence the location of the company’s new liquid nitrogen facility in Eastern Kentucky.   Ferus Corp. specializes in providing integrated solutions to the energy industry for well stimulation, well completions and enhanced oil recovery.  The project will create a minimum of 34 new jobs and entail a capital investment of $30.8 million in the Commonwealth.

 

“Kentucky is pleased to welcome Ferus as its newest corporate citizen,” said Gov. Beshear. “The creation of 34 new jobs and a $30.8 million investment will have a positive economic impact on the Letcher County community.  I am confident Ferus will quickly establish itself as an active community partner and through a continued partnership with state and local government, will grow and prosper in the Commonwealth.”

 

Ferus is constructing a liquid nitrogen plant and associated transportation and storage equipment, which will be based in the Gateway Industrial Park near Jenkins.  The plant is expected to be operational by the end of 2011and will be capable of producing up to 200 tons of liquid nitrogen per day.  The product will be delivered to plant storage, customers’ yards or directly to well-sites, depending on the customers’ needs.

 

“This is a historic day for our company as we initiate our new business model in the United States and begin constructing the first of hopefully many new plants and operational bases in the region.  The state and local officials in Kentucky have been incredibly supportive of our efforts and we are grateful” said Dick Brown, President & CEO of Ferus. 

 

The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved Ferus for tax incentives up to $2 million through the Kentucky Business Investment program.  The incentive can be earned over a 15-year period through corporate income tax credits and wage assessments. 

 

KEDFA also approved Ferus for tax benefits up to $192,000 through the Kentucky Enterprise Initiative Act, an incentive program that allows approved companies to recoup Kentucky sales and use tax on the cost of construction materials, building fixtures and research and development equipment.

 

Local government and community officials had this to say about the announcement: 

 

Jim Ward, Letcher County Judge Executive

 

“We want to welcome Ferus Corp. to Letcher County and the Gateway Park. We pledge our continued cooperation and support toward their success in Letcher County.”

 

 

Charles Dixon: Mayor of Jenkins

 

“We are excited that Ferus Corp. has decided to locate in the Gateway Park at Jenkins. We will aid them in any way to ensure that this is a successful endeavor that will be good for Ferus and the people of Letcher County.”

  

Julian Slone, Appalachian Industrial Authority Chairman

 

“We are delighted to have a multinational company such as Ferus constructing a new plant at the Gateway Industrial Park. Located in the heart of the Appalachian natural gas field, Gateway welcomes Ferus Corp. as a new service provider to this industry.”

 

 

Johnny Ray Turner, State Senator

 

“This is a good day for Letcher County because new opportunities are opening up that will provide a boost to the local economy and bring jobs to the area. With the decision by Ferus to locate its new $30 million facility in Letcher County, there is the anticipation of as many as 40 good jobs with good salaries and good benefits. In the next couple of years, construction workers also will have a chance to be involved in building a facility for the nitrogen liquefaction plant. This is a great opportunity for the area. I join Governor Beshear, Judge Ward, Mayor Dixon, the magistrates, the councilmen and other officials in welcoming Ferus to Kentucky and to Letcher County. This is the right company at the right time at the right place. Their success is our success – let’s all work together toward that goal.”

 

Leslie Combs, State Representative

 

What a great day for Letcher County and Eastern Ky. We appreciate the commitment Ferus Corporation has made to our region. Coal continues to be our number one industry but we need more diversification to help compliment the coal industry.

 

 

Further information on Ferus can be found at www.ferus.ca.  A detailed community profile for Jenkins (Letcher County) can be viewed at http://thinkkentucky.com/EDIS/cmnty/index.aspx?cw=073.  Information on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com.