Kroger to build a $391M distribution hub in KY that will employ 430
One of the country’s largest traditional grocery store chains is opening a distribution center in Kentucky.
Kroger is putting a $391 million distribution center in Franklin, the county seat of Simpson County in the south central part of the state. The facility will create 430 new, full-time jobs and serve as a full-line distribution hub with some automated operations that will supply the entire region.
The Kentucky Economic Development Finance Authority gave preliminary approval Dec. 11 for up to $12 million in tax incentives given Kroger make the investment and creates promised jobs over the next 15 years.
The authority also approved Kroger for $1 million in tax incentives for the distribution center through the Kentucky Enterprise Initiative Act, which will allow the grocer to recoup sales and use tax dollars on construction costs, building fixtures and equipment used in the research and development of electronic processing parts of the facility.
The distribution center investment is in addition to a $204 million expansion Kroger is making to Country Oven, the bakery it owns in Bowling Green.
According to the Bowling Green Daily News, fiscal court magistrates voted in October to issue $224 million in industrial building revenue bonds for the bakery expansion.
In a news release, Kentucky Gov. Andy Beshear thanked Kroger for its continued commitment and investment in the Bluegrass State.
The grocery chain is headquartered in Cincinnati and has 110 stores in Kentucky employing more than 19,000 people. It opened doors at a new Marketplace location in Lexington off Newtown Pike in August.
“Kroger has been a crucial contributor to Kentucky’s thriving economy, and this new location helps ensure that will continue to be the case for years to come,” Beshear said.
Kroger already operates four manufacturing and distribution facilities in Kentucky and has a regional headquarters in Louisville.
Since 1987, the grocer has made the Kentucky Derby Garland of Roses and in 2017 partnered with the University Kentucky in a marketing agreement that included renaming the university’s football stadium to Kroger Field.
Franklin Mayor Larry Dixon said in the news release Kroger’s commitment was a reflection of the community’s dedication to fostering growth and providing opportunities for Simpson County residents.
“It is really great to have a corporate partner like Kroger choosing to locate in our community,” said Simpson County Judge-Executive Mason Barnes. “The jobs being created and the amount of investment dollars are extremely beneficial to strengthening our local economy. I am very glad to have Kroger here; it certainly helps broaden our industrial diversity in Simpson County.”
According to the Simpson County profile compiled by the Kentucky Cabinet for Economic Development, nearly 20% of those employed in the county are production workers and the manufacturing industry is the county’s largest employer, followed by retail.
“This $400 million investment represents not just a commitment to our workforce but also to innovation and growth in our industrial sector,” said Franklin-Simpson Industrial Authority Executive Director Jim DeCesare in the release. “The projected 430 jobs will have a lasting impact on our community and enhance our region’s economic landscape.”
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