Frankfort, KY (STL.News) Kentucky companies continue to help in the fight against COVID-19, as today Gov. Andy Beshear congratulated Eurofins Genomics LLC, an international provider of DNA sequencing services, on the company’s plans to expand its presence in Louisville with a new manufacturing facility to supply reagents used for virus detection. The company will invest over $35.7 million for the new operation.
“I am pleased to see Kentucky companies continue to do their part as we fight the COVID-19 pandemic,” Gov. Beshear said. “This investment by Eurofins Genomics will directly boost testing capabilities while also setting the company up for future growth and job creation in our state. I appreciate this commitment by leaders at Eurofins and hope to see the company continue to grow in the years ahead.”
Eurofins will construct a 65,000-square-foot facility in Blankenbaker Station Business Park across from its existing location. The new facility will house the company’s manufacturing, research and administrative operations. The facility will produce oligonucleotides – or oligos – which are synthetic DNA used in molecular diagnostic applications. Oligos are critical for the detection of viruses and are used in PCR-based COVID-19 tests and a variety of other diagnostic applications. The new facility will increase domestic production of oligo and reduce lead times to help support a market vulnerable to supply shortages. Production will support the company’s current partnerships with the U.S. Air Force and the U.S. Department of Health and Human Services. Construction is expected to begin in April and be completed by Q2 2023.
Kentucky’s ideal geographic location and expansive distribution and logistics presence will enable Eurofins to enact fast and reliable distribution of these key reagents throughout the country to help mitigate supply chain issues and support domestic COVID-19 testing.
“The new facility will increase domestic production of oligos to combat current and future pandemics and empower a broader range of research in the molecular diagnostic field,” said Sumit Gupta, president of Eurofins Genomics.
Louisville-based Eurofins Genomics is a life science company that provides genomic products and services to medical, environmental and agricultural partners with locations in the U.S., Europe and Asia. The company is a subsidiary of Luxembourg-based Eurofins Scientific, which was founded in 1981 and employs 55,000 people in over 900 laboratories across 50 countries.
Louisville Mayor Greg Fischer noted the logistical advantage that will support Eurofins’ growth.
“The pandemic has shown how rapid-turnaround medical services are pivotal to providing people with answers, as well as helping track the spread of viruses like COVID-19,” Mayor Fischer said. “By locating in Louisville, the home of UPS Worldport, medical testing, research and laboratory companies including Eurofins can save critical time on shipping, ensuring the quickest results for their clients. Eurofins’ plans to expand its North American headquarters in Louisville will allow the company to further its mission of providing high-quality, accurate and timely service to customers across the continent.”
Eurofins’ investment and planned job creation builds on recent economic momentum in the commonwealth, as the state builds back stronger from the effects of the COVID-19 pandemic. Two announcements made Friday bring total new investment for the week to approximately $291.8 million with over 1,200 jobs announced.
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. Kentucky’s average incentivized hourly wage for projects statewide in 2021 was $24 before benefits, a 9.4% increase over the previous year.
In September, Gov. Beshear, Ford Motor Co. Executive Chair Bill Ford, CEO Jim Farley and Dong-Seob Jee, president of SK Innovation’s battery business, announced the single largest economic development project in the history of the commonwealth, celebrating a transformative $5.8 billion investment that will create 5,000 jobs and places Kentucky at the forefront of the automotive industry’s future.
Kentucky also saw an all-time, record-setting budget surplus in fiscal year 2021 and enters 2022 with an estimated $1.9 billion more than budgeted.
In addition, Kentucky recently placed seventh overall in Site Selection magazine’s annual Business Climate Rankings. The commonwealth ranked third nationally in the 2020 projects per capita ranking and fifth in the 2021 Prosperity Cup rankings, positioning the state among the national leaders for business climate.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) today approved Eurofins for up to $300,000 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.
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, Eurofins 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.