MHS to open new production facility in Kentucky

MHS Holdings, a leading global provider of advanced material handling automation solutions, engineering, equipment and software, is moving forward with plans to open a new manufacturing facility in Bowling Green, Kentucky after the Kentucky Economic Development Finance Authority (KEDFA) this week granted preliminary approval of a 10-year agreement that can provide up to $2.5 million in tax incentives.

In turn, MHS plans to invest $7.6 million in the facility, which will create 200 new full-time jobs. The project is expected to have a total economic impact topping $327 million over a 10-year period.

“Kentucky’s distribution and logistics sector – and the industries that support it – have played a vital role in our state’s ability to weather the storm of the past 10 months and position the state for future success,” Kentucky Gov. Andy Beshear said. “As we build back stronger, manufacturers like Material Handling Systems are key to Kentucky’s continued growth. By combining advanced technology with precision manufacturing, MHS enables logistics companies to serve the world. I welcome this great new project and the new jobs this Kentucky-grown success story will create.”

The new facility is planned for a 181,000-square-foot building in Kentucky Transpark and will be used to build steel structures for conveyor and sortation systems. MHS is among the 10 largest integrators of material handling solutions worldwide and counts among its customers several prominent e-commerce and logistics providers, including UPS, FedEx Ground and Amazon.

“We are thrilled to have Material Handling Systems join us in South Central Kentucky. Their operations will bring diversity to our manufacturing sector as a leading provider of material handling systems that support a portion of the world’s e-commerce infrastructure,” said Bowling Green Area Chamber of Commerce President & CEO Ron Bunch. “We look forward to working with them for years to come.”

This week’s announcement comes just two weeks after MHS announced plans earlier this month to acquire Michigan-based TGW U.S. Conveyors, formerly Ermanco, Inc., a division of TGW Logistics Group. That transaction is expected to close mid-February. In April 2017, MHS’s founders led the company through a recapitalization in partnership with Thomas H. Lee Partners, L.P. (“THL”), followed by a series of acquisitions that expanded the Company’s global footprint, capabilities and product and service lines.

“Kentucky has been a fantastic place to grow our global business during the past 20-plus years, and we are pleased to be expanding our presence in our home state,” said MHS CEO Scott McReynolds. “Our customers are experiencing new peak demand levels, which means our products and services are also in high demand. This facility will fill an important niche in our manufacturing process and ultimately helps us better serve those customers. We appreciate the KEDFA board’s support and the warm welcome from so many of the region’s leaders, and we look forward to becoming a valued member of the local business community.”