Gov. Beshear Congratulates American Welding & Gas on New $9.6 Million Fill Plant in Georgetown Creating 10 Jobs

Project will push company's employment to approximately 45 people

FRANKFORT, Ky. (Aug. 28, 2024) - Today, Gov. Andy Beshear congratulated local officials and representatives from American Welding & Gas (AWG), a manufacturer and distributor of industrial, medical, specialty and beverage gases, for cutting the ribbon on the company's new $9.6 million, state-of-the-art fill plant in Georgetown, which is creating 10 full-time jobs in the region.

"Kentucky companies are continuously reinvesting in our communities and our workforce," said Gov. Beshear. "Our historic economic momentum wouldn't be possible without companies like American Welding & Gas buying into Kentucky and what we have to offer. I am happy to welcome this exciting next step for AWG and look forward to its continued success here in Georgetown."

AWG's new Georgetown plant is a 20,000-square-foot facility located adjacent to its existing store and warehouse location. Producing industrial and medical gases used by AWG customers in Kentucky, Indiana, Ohio, Tennessee and West Virginia, the new plant uses technology that will enable AWG to more safely and efficiently produce and package compressed and cryogenic gases. When fully operational, approximately 45 AWG employees will be based at this facility.

"We are proud of the team that built this facility," said AWG CEO Jason Krieger. "We are especially thankful for the incentive package received from the Commonwealth of Kentucky and the assistance from our general contractor, Gray Ohio Valley, and our gas equipment manufacturer, Cryogenic Technology Resources. AWG, Gray and CTR are completing this project on schedule and on budget."

American Welding & Gas, a family-owned company, is headquartered in Raleigh, North Carolina. AWG traces its history to Valley Welders Supply in Billings, Montana, and Scott-Gross Company in Lexington - both of which began in 1949. The company manufactures and distributes industrial, medical, specialty and beverage gases and associated welding and safety supplies. AWG operates over 100 retail locations and 22 gas fill plants located in 22 states, stretching from Montana to Pennsylvania and down through Texas and Florida. AWG has over 800 employees who serve their customers in over 30 states and Canada.

Scott County Judge/Executive Joe Pat Covington wished AWG success: "American Welding & Gas's investment in Scott County for their new fill plant will be the perfect complement to their current warehouse and store. Great companies like AWG have helped provide services and opportunities to Georgetown and Scott County, and I am thankful for their commitment and confidence in our community. We wish AWG much success in the future."

Jack Conner, executive director of Scott County United Inc., congratulated the company on the expansion: "AWG is another prime example of a Scott County business choosing to maintain their position in our community and make an additional financial investment to expand. This fits perfectly with our local Economic Development Strategic Plan - maintain and expand. Congratulations to American Welding & Gas."

AWG's investment and job creation build on the best four-year period for economic growth in state history.

Since the beginning of his administration, Gov. Beshear has announced more than 1,000 private-sector new-location and expansion projects totaling $32 billion in announced investments, creating nearly 55,000 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth's history.

The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 and 2023 topped $26 in consecutive years for the first time.

Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky as the electric vehicle battery production capital of the United States: Ford Motor Co. and SK On's transformative $5.8 billion, 5,000-job BlueOval SK Battery Park in Hardin County; AESC's $2 billion, 2,000-job gigafactory project in Warren County; Toyota's $1.3 billion investment in Scott County; and INFAC North America's $53 million investment in Taylor County, among others.

The Governor's administration also secured the largest General Fund budget surplus and Rainy Day Fund, as well as the most jobs filled in state history. Last year, Kentucky set the record for the longest period with the lowest unemployment rates in state history.

Kentucky also secured rating increases from major credit rating agencies Fitch Ratings and S&P Global Ratings, and Moody's Investors Service upgraded Kentucky's credit outlook from stable to positive.

In March, Site Selection magazine ranked Kentucky third nationally and first in the South Central region for economic development projects per capita in its 2023 Governor's Cup rankings. In April, Site Selection placed Kentucky second in the South Central region and in the top 10 nationally in its 2024 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.

Gov. Beshear announced a "Supply Kentucky" initiative with the goal of boosting job growth, reducing costs and providing more security in the supply chains of our Kentucky companies.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in December 2023 preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide tax incentives based on the company's investment and annual job targets.

Additionally, KEDFA approved AWG for 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, AWG 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 AWG, visit AWGgases.com.

A detailed community profile for Scott 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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