One of the world's leading innovators in vehicle steering technology is expanding its operation in Northern Kentucky and bringing new jobs along with it.
ZF Steering Systems -- a subsidiary of the German-based automotive engineering company ZF Lenksysteme GmbH -- celebrated the completion of a $95.8 million expansion Sept. 7 that will allow the company to remain at the forefront of the vehicle steering industry while benefitting the Northern Kentucky region.
The expansion of the company's plant -- located in Florence since 1994 -- consisted of the construction of two additional buildings to the company's complex, increasing its facilities space by approximately 175,000 square feet. The additions were spurred by a growth in demand for the company's products, which include steering columns, power steering pumps and innovative new electric power steering components.
ZF Steering consolidated its Florence operations in 2006.
"We outgrew our Florence operations in less than a year," says Mike Hirsch, Vice President of ZF Steering. "Now we are doubling in size."
The company is not only adding more space, however. It will also bring 374 new full-time jobs to the Northern Kentucky region within the next two years due to the expansion, more than doubling its workforce (it currently employs approximately 300 people). It's one of the largest job-creation projects in Kentucky announced in 2010.
"Employment-wise, we have a significant impact on the region," Hirsch says. "We pride ourselves on being an employer of choice."
The new additions to ZF Steering's facilities in Florence came to fruition due to a 10-year agreement between the company and the Kentucky Economic Development Finance Authority, giving approval for the company to receive approximately $7.5 million in performance-based tax incentives -- such as wage assessments and corporate income tax credits-- through the Kentucky Business Investment program.
Hirsch cites the cooperative and pro-active climate of Northern Kentucky, and interagency collaboration at every level, for making the growth of ZF Steering possible -- when the company needed better road infrastructure near their facility for truck traffic, for example.
"The city, state and county immediately jumped in when we laid out our plans and agreed to put in a connector to regulate our inbound traffic," he says. "It will be a great help once it is in place."
The business community has been collaborative, too -- from local architectural and construction firms to the Cincinnati/Northern Kentucky International Airport (which borders ZF Steering on three sides) to Gateway Community Technical College, which provides a specialized training program tailored to ZF Steering's unique needs. ZF is also a founding member of the Lean Program, a nonprofit consortium of 15 Northern Kentucky manufacturing businesses that provides shared learning opportunities, walk-throughs and sub-groups for human resources, safety and leadership teams.
''For anyone coming into the region or considering coming into the region, I would want them to know that this exists, and they can tap into it,'' Hirsch says.
Leaders throughout Northern Kentucky are proud of ZF Steering's investment in the region and the commitment it reflects to the region's future growth.
"Working with ZF Steering Systems on this project has been a pleasure," said Florence Mayor Diane Whalen in a press release. "The city of Florence and all of Northern Kentucky are grateful for the capital investment and the employment opportunities that ZF is providing to our community."
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