(Henderson, Kentucky) – The state of Kentucky is offering $4 million in tax incentives to lure the owner of the former molded products division of Atlantis Plastics to locate its headquarters here and keep existing manufacturing jobs at its plant.
Fortis Plastics - a combination of the former Atlantis division and the former L&P Plastics - was launched by New York-based private equity fund Monomoy Capital Partners, which acquired both companies this year. L&P Plastics had been a division of Leggett & Platt.
According to filings with the state, Fortis is looking to restructure operations to remain competitive and increase profits.
One of the scenarios includes keeping its existing Henderson facility, incorporating the headquarters within the site and closing other out-of-state operations while bringing various functions to Henderson. That move could add more than 100 jobs. State officials say Fortis is also looking at other options including closing the Henderson facility and moving operations to Tennessee and Arkansas; and closing plants in Henderson and Elkhart, Indiana and moving those machines to Tennessee.
If the company decides to consolidate operations in Henderson, it will need to spend more than $6.5 million on equipment as well more than $300,000 on renovations. Fortis currently employs 150 at Henderson, where it operates round-the-clock with an annual payroll of about $5.7 million.
The state offered the tax incentives under its industrial revitalization act. To keep the entire $4 million, Fortis must maintain at least 135 jobs at the site.
Fortis, a diversified custom molding business, serves the appliance, furniture, building products and medical device industries. Monomoy spent more than $23 million to acquire the molded products group of Atlantis in October. A month earlier, it bought L&P Plastics for an undisclosed sum.
Its unclear how soon a decision will be made on whether Fortis will add jobs in Henderson or shutter the facility. Through a public relations firm, Monomoy officials declined to comment on a timetable for the announcement. A new website for Fortis Plastics Group is reportedly under construction. For more information about Monomoy visit http://www.mcpfunds.com/
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