Announced a year ago and paused by the pandemic, project now represents a $133 million commitment
FRANKFORT, Ky. (Feb. 15, 2021) – As Kentucky rebuilds its economy stronger than ever, Gov. Andy Beshear today highlighted T. Marzetti Co.’s additional growth plans, which will increase the company’s expansion project announced a year ago from 140 to 220 full-time jobs and represents the company’s largest-ever investment of $133 million, up from $93 million.
The Marzetti operation in Horse Cave manufactures salad dressings, sauces and other foods for retail and foodservice markets. It currently employs over 500 people.
“As we work to build back our economy and ensure a brighter future for Kentuckians, the same can be said of companies like T. Marzetti Co.,” Gov. Beshear said. “This company already announced a substantial expansion this time last year, and its leaders have taken that project a step further to provide even more quality jobs for residents in and around Hart County. I’m glad Marzetti will represent an even greater part of Kentucky’s future, and I thank the company’s leadership for their commitment to the commonwealth.”
Following the initial expansion announcement by Gov. Beshear and Marzetti executives in February 2020, company leaders pushed pause on the project due to the pandemic. The company is now moving ahead with the 184,500-square-foot expansion, which will create additional manufacturing space. The company plans to purchase new equipment to increase dressing and sauce production, add eight new processing kitchens and create several packaging lines to meet growing customer demand. Work on the project has begun and is expected to be completed by July 2022.
“This expansion builds on the partnership that we have enjoyed with the people of Kentucky since our parent company built our first facility here in 2005. Without the good work and commitment to our company-wide goal of ‘being better’ from the more than 500 employees already on site, we would not have the faith to make this investment, the largest in Marzetti’s 100-year history,” said Dave Nagle, chief supply chain officer at Marzetti. “Marzetti is also partnered with Kentucky-based companies for this new construction, bringing nationally recognized expertise to lead the effort with Gray Construction of Lexington as design/build contractor, In-Line Engineers of Louisville for process engineering and AEI of Elizabethtown for civil engineering. We look forward to continuing our partnerships and increasing our contribution to the well-being of the people and communities of South Central Kentucky as these new facilities come online in the next few years.”
Marzetti’s roots as a food producer date back to the late 19th century. The company, headquartered in Columbus, Ohio, was acquired by Lancaster Colony Corp. in 1969. Lancaster Colony is also the parent company of several other food companies, including Sister Schubert’s Homemade Rolls Inc., which produces frozen dinner rolls at its facility adjacent to the Marzetti operation in Horse Cave.
Including this updated announcement, Marzetti and Sister Schubert’s have combined to announce approximately $313 million in investment with the creation of more than 780 jobs in Hart County in less than two decades.
Marzetti is among the more than 350 food and beverage manufacturing, service and technology facilities located in Kentucky currently employing over 52,000 people. In 2020 alone, the industry announced 53 new location or expansion projects expected to create more than 1,500 full-time jobs with $974 million in announced investments.
Hart County Judge/Executive Joe Choate referred to the expansion as a blessing for the region.
“Hart County has been a longtime partner with T. Marzetti Co.,” Judge/Executive Choate said. “The magistrates and I are ecstatic about another wonderful planned expansion that will further the blessings on Hart County and all surrounding areas.”
Horse Cave Mayor Randall Curry said he welcomes the company’s growth in the community.
“I am very proud of the T. Marzetti expansion coming to the Horse Cave plant,” Mayor Curry said. “They have been an important part of the growth and good paying jobs for our community. I am very proud of their investment and the job growth that this expansion will bring.”
John Bunnell, chairman of the Hart County Industrial Authority, noted the impact of the company’s growth will extend far beyond its record investment.
“We are excited about T. Marzetti Co.’s expansion in Hart County and how it will continue to benefit not only Hart County, but our entire region,” Bunnell said. “Every dollar invested here will have a positive ripple effect across our local economy as it recirculates through other local businesses and also helps fund our schools, police, fire and other community services.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in February 2020 preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $2.75 million in tax incentives based on the company’s originally announced investment of $92.8 million and annual targets of:
- Creation and maintenance of 140 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $25.72 including benefits across those jobs.
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.
Additionally, KEDFA approved Marzetti for up to $250,000 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.
In addition, Marzetti 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.
For more information on T. Marzetti Co., visit TMarzettiCompany.com.
Learn more about Lancaster Colony at LancasterColony.com.
A detailed community profile for Hart County can be viewed here.
Information on Kentucky’s economic development efforts and programs is available at www.CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov and LinkedIn.
Read about other key updates, actions and information from Gov. Beshear and his administration at governor.ky.gov, kycovid19.ky.gov and the Governor’s official social media accounts Facebook, Twitter and YouTube.