Peerless-Premier Appliance Co., a stove manufacturer that cut 100 union jobs last year at its plant in Illinois, will relocate part of the plant from that state to Clinton, KY, U.S.
Kentucky is offering a worker training program and allowing the company to keep U.S. $1.56 million in state taxes over 15 years. The tax credit equals the $1.5-million equipment investment that Peerless is making in the town of Clinton and a lease to rent the building from the local industrial foundation, the Kentucky Economic Development Cabinet said.
The company also will receive a $980,000 grant to convert a shuttered textile plant to assemble ranges, Governor Ernie Fletcher said.
The Clinton relocation will create 100 jobs that pay $8 an hour. Peerless is moving part of its plant from Belleville, IL, U.S., where it eliminated jobs last year after workers declined to cut their wages.
Peerless President Alex Volansky said moving to a small Kentucky town without organized labor "was only a small consideration" in the decision to open a new plant.
"We were looking for ways to restore our ability to compete, and that's exactly what we asked (the union) for at the time," Mr. Volansky said. He added that the wages would help privately held Peerless stay competitive. (Associated Press)
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