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Swedish Match to expand Owensboro operation

Company will invest nearly $41 million in new production space, create 36 jobs

By Woody Maglinger/Jack Mazurak

Frankfort, KY - Swedish Match, a smokeless tobacco products manufacturer, will add to its Owensboro production facility with a more than $40.9 million investment and create 36 full-time jobs, Gov. Matt Bevin announced today.

The company's investment will cover the buildout of a 16,000-square-foot production area for ZYN, a smokeless and spitless tobacco-derived nicotine pouch. The investment will also bring a 34,000-square-foot expansion of its current facility and the purchase of new equipment. The company anticipates construction will begin in September and finish by July 2019.

"We recently decided to invest in larger scale production capacity to more fully capitalize on the progress of some of our newer smokeless products," said Swedish Match North America Director of Operations Kristian Lindfors. "This capacity project will expand our existing facility for smokeless products in the US and will primarily cater to US demand, but could potentially address future launches in other markets."

Swedish Match manufactures smokeless tobacco products such as moist snuff, loose leaf and plug tobacco. The company's major brands include Red Man chewing tobacco; Longhorn, Timberwolf and Red Man moist snuff; and Day's Work plug tobacco. The Owensboro operation, established in 1973, currently employs 342 people, including a 26-member research and development team added during a 2015 expansion.

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in August approved the company for up to $150,000 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.

Swedish Match also can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. In fiscal year 2016, the Kentucky Skills Network provided training for nearly 95,000 Kentuckians and 5,000 companies from a variety of industry sectors.

This story was posted on 2017-08-31 12:07:15
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