FRANKFORT, Ky. (April 27, 2023) – Today, Gov. Andy Beshear announced new growth in the commonwealth’s manufacturing and distribution and logistics sectors with Castellini Co. LLC, a third-party logistics company, expanding its Wilder facility to provide warehousing, co-packing and transportation services for the food industry with a nearly $16.6 million investment that will create 180 new full-time jobs with 128 of those being Kentucky-resident positions.
“Manufacturing and distribution and logistics are both crucial sectors in Kentucky, and companies like Castellini expanding their operations adds to the growth we’re seeing,” said Gov. Beshear. “I want to congratulate Castellini on their expansion to the Wilder facility and thank the company’s leadership for continuing to grow, invest and create quality jobs right here in the commonwealth.”
Castellini’s Wilder facility expansion will include the addition of a 36,000-square-foot freezer, increasing its capability to provide additional services in the perishable third-party logistics industry. The expansion will also include installation of a pick-to-light order technology, which will increase the efficiency of the facility’s workforce. The company will also be assembling meal kits to be shipped out from the Wilder facility.
“We are excited about what this investment in our Wilder facility means for both the growth of Castellini Co. and for the people of Northern Kentucky,” said Bob Castellini, chairman of Castellini Co. “Our new freezer warehouse and order picking technology will allow us to continue to be a leader in the perishable third-party logistics industry. We want to thank Gov. Beshear, Judge Pendery and Mayor Jones for their support and commitment to creating jobs in Northern Kentucky.”
Founded in 1896, Castellini has a long tradition of innovation and excellence in the fresh produce and perishable distribution industries. Castellini operates warehousing and distribution facilities in Wilder, Kentucky, and Conley, Georgia.
This expansion adds to Kentucky’s thriving distribution and logistics sector, which includes more than 600 facilities and employs over 91,000 people statewide. Administration-to-date, 120 new-location and expansion projects within the industry are expected to create more than 7,700 full-time jobs with over $2.2 billion in new investments.
Castellini’s project also contributes to Kentucky’s large manufacturing sector, which administration-to-date has seen more than 570 projects commit to invest over $21.9 billion and create nearly 28,900 jobs.
Campbell County Judge/Executive Steve Pendery thanked Castellini Co. leaders for continuing to invest and adding 128 new jobs in the Wilder facility.
“Castellini is a leader in the just-in-time, ready-to-eat packaging business and will grow its total employee base by 60% at its facility in Campbell County,” said Judge/Executive Pendery. “With Northern Kentucky’s transportation network and access to more than 50 percent of the U.S. population within a day’s drive, our region is ideal for food manufacturing and logistics companies.”
City of Wilder Mayor Valerie Jones congratulated Castellini on its expansion and the new investment and jobs it will create.
“This is an exciting day for the City of Wilder. Castellini Company is a valued employer in the City of Wilder and we welcome the new, good-paying jobs being created for our residents and the broader community,” added Mayor Jones. “Wilder is well positioned for manufacturing companies with ideal proximity to the highway system in Northern Kentucky.”
BE NKY Growth Partnership President & CEO Lee Crume noted that food and flavoring manufacturing is a strong subcluster in the Cincinnati region.
“Castellini is a legacy food and produce company founded in Cincinnati and we are thrilled to win an expansion of their Northern Kentucky facility,” said Crume. “We have more than 50 food and flavoring companies located in Boone, Campbell, and Kenton counties with hundreds more in the Cincinnati region. As food manufacturers innovate with changes in consumer behavior, we are working diligently to retain and attract them to Northern Kentucky.”
Castellini’s investment and job creation furthers recent economic momentum in the commonwealth, as the state builds back stronger from the effects of the pandemic.
Since the beginning of his administration, Gov. Beshear has announced the creation of 46,000 full-time jobs and more than 850 private-sector new-location and expansion projects totaling $25.9 billion in announced investments.
The Governor has now secured the best two-year period in state history for economic growth.
In 2021, the commonwealth shattered every economic development record in the books. Private-sector new-location and expansion announcements included a record $11.2 billion in total planned investment and commitments to create a record 18,000-plus full-time jobs across the coming years.
That momentum continued strongly into 2022 with 248 new-location and expansion announcements totaling 16,000 full-time jobs behind nearly $10.5 billion in new investment.
The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 was $26.78 before benefits, the second-highest mark since 2010 and an 11.5% increase over the previous year.
Gov. Beshear also announced the two largest economic development projects in state history. In September 2021, Gov. Beshear and leaders from Ford Motor Co. and SK Innovation celebrated a transformative $5.8 billion investment that will create 5,000 jobs in Hardin County. And in April 2022, the Governor was joined by leadership at Envision AESC to announce a $2 billion investment that will create 2,000 jobs in Warren County. These announcements solidify Kentucky as the EV battery production capital of the United States.
Kentucky’s success has been noted by both S&P Global Ratings and Fitch Ratings, which have upgraded the state’s financial outlook to positive in recognition of the commonwealth’s surging economy.
Site Selection magazine placed Kentucky second nationwide and first in the South Central region for its annual Governor’s Cup ranking for 2022, which recognizes state-level economic success based on capital investments.
Gov. Beshear’s administration is projected to post the four highest years of budget surpluses in Kentucky history, and the state’s rainy-day fund has a record balance of $2.7 billion.
Gov. Beshear recently announced a new “Supply Kentucky” initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.
The Governor also recently announced that Kentucky set the record for the longest period with the lowest unemployment rates in state history. Over the past 15 months, the rate has been between 3.8%, the lowest rate ever recorded, and 4%, marking the longest period with the lowest unemployment rates in state history. Kentucky has now achieved a 3.8% unemployment rate during four months since the beginning of 2022.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) today preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $2.05 million in tax incentives based on the company’s investment of $16.59 million and annual targets of:
- Creation and maintenance of 128 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $27.50 including benefits across those jobs.
Additionally, KEDFA approved Castellini 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.
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.
In addition, Castellini can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
For more information on Castellini Co., visit CastelliniCompany.com.
A detailed community profile for Campbell County can be viewed here.
Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.
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