Wausau Paper expanding in Harrodsburg, adding 76 jobs

State OKs Tax incentives of up to $7.1 million

ssloan@herald-leader.comApril 14, 2011 

State officials announced Wednesday that Wausau Paper plans to expand its operations in Harrodsburg and add 76 employees.

The company plans to invest $220 million in the expansion of its operations, which include production of towel and tissue paper products. The plant was opened in 1990 and now employs 397.

"This is an outstanding vote of confidence by Wausau Paper in the Harrodsburg work force and Kentucky's overall business climate," said Gov. Steve Beshear in announcing the expansion. "The growth and success of our existing industries is vital to our state's economic health and recovery."

At a special meeting Wednesday, the Kentucky Economic Development Finance Authority approved tax incentives of up to $6 million through the Kentucky Business Investment program for Wausau Paper. The incentives allow the Wisconsin-based company to keep that money it otherwise would pay in taxes over a 10-year period if it creates the required jobs.

The company also was approved for up to $1.1 million in incentives under the Kentucky Enterprise Investment Act, which allows companies to recoup state sales and use tax on construction costs, building fixtures and other equipment.

Wausau Paper's expansion will include the installation of a machine to produce about 75,000 tons of towel and tissue products a year.

"The new machine will provide the capability to produce products at a quality level that is comparable to the best on the market today," said CEO Thomas J. Howatt.

Reach Scott Sloan at (859) 231-1447 or 1-800-950-6397, Ext. 1447.

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