PTC Seamless Tube Corp. announced plans to establish a new manufacturing operation for producing seamless steel tubes in Hopkinsville, Kentucky.
The expansion project in Hopkinsville requires an investment of $102 million, and will create 283 new jobs.
PTC Seamless Tube Corp. is a subsidiary of Wexford, Pennsylvania-based PTC Group Holdings Corp.
The company is implementing a strategic shift from production of traditional mechanical tubular products to seamless tubes such as oil country tubular goods (OCTGs) that the energy industry in the U.S. needs for shale developments.
The new manufacturing plant will be housed in a facility that was formerly a PTC plant, although run by a different subsidiary of the parent company. Before its closure, the plant was producing mechanical tubing components for the automotive industry.
PTC is now renovating this property, acquiring an adjacent site and reworking the whole layout to make room for the new equipment in 256,000 square feet of space.
In order to secure the project, the Kentucky Economic Development Finance Authority (KEDFA) has preliminarily approved PTC for up to $12 million in tax incentives under the Kentucky Business Investment program.
These are performance-based incentives which allow the company to recoup a portion of the investment through wage assessments and corporate income tax credits, which become available when it meets investment and job creation goals as per the agreement.
PTC is also getting $500,000 as sales and use tax refunds under the Kentucky Enterprise Initiative Act. These refunds are available for purchase of construction material, R&D equipment and electronic processing equipment.
Peter Whiting, chairman, president and CEO of PTC Group Holdings Corp., said they were pleased to be returning back to Hopkinsville where the company has a long history of working with the community for creating manufacturing job opportunities.
Whiting said they were grateful for the support provided by Gov. Steve Beshear and Kentucky‚Äôs Cabinet for Economic Development team, who he said were very helpful during the process of analyzing location options for the expansion.
Hopkinsville Mayor Dan Kemp said they were pleased that PTC had decided to bring the new project to their facility in Hopkinsville. He said it was a testament to the support the City offers to local businesses, and added that they were proud of PTC‚Äôs confidence in growing their operation in Hopkinsville.