GLASGOW – A new company plans to move into the former LSC Communications Inc. property on Glasgow’s Donnelley Drive.
Contemporary Amperex Technology Kentucky LLC, which is based in Fujian, China, and manufactures lithium-ion batteries for the automotive industry, purchased the LSC property for $8.5 million.
Minutes from the Kentucky Economic Development Finance Authority’s June 25 meeting listed the project as a Kentucky Business Investment Program preliminary project and said CATL was considering establishing a facility in Glasgow with a projected investment of $97.7 million.
Documents on file at the Barren County Clerk’s Office shows the property transfer to be between LSC Communications Inc. and Contemporary Amperex Technology Kentucky LLC for $8.5 million.
The meeting minutes also said the highest job target over the term of the agreement is 350 with an average hourly wage of $25, including benefits.
Maureen Carpenter, executive director of the Barren County Economic Authority, confirmed the purchase of the LSC property last week but offered little information about the sale. “At this point, I can give you the company’s statement and that’s all I’m going to be able to say about it,” she said.
She sent the company’s statement via email to the Daily News. It said: “CATL has acquired the LSC manufacturing plant in Glasgow, Kentucky. CATL is in the process of determining future production plans, which will be announced sometime after the first of the year in 2021.”
The Glasgow City Council has adopted a resolution regarding the submission of an application to the Kentucky Economic Development Finance Authority for an economic development bond grant.
The city “proposes to seek grant funds not to exceed $8.5 million for the benefit of the company ...,” the resolution said, which was read at a recent council meeting.
“This is what has always been considered as a pass-through grant. It has been set up through the state to where we, as the city, have to apply for it,” Mayor Harold Armstrong said.
The city has served as a pass-through entity for other projects. The latest one was for the T.J. Samson Health Pavilion at Barren River Plaza.
“We did the same thing as a pass-through for them,” he said. “It doesn’t evaluate our bonding powers. What it does is it sets this up for this company to do their renovations and to get their equipment in there, and the state has basically approved them providing we submit this through the council. We don’t even administrate it, but we use it as pass-through to do this development and to bring these extra jobs in here.”
In reviewing the resolution and attached exhibits, Councilman Terry Bunnell questioned the project description that was included and noted that the page was blank. He asked if it was intentionally left blank.
“I think it’s supposed to be blank,” Armstrong said. “They just got the deed to the property and they didn’t want to have a public announcement until the president of the company comes here in January.”
Councilman Joe Trigg questioned how the bond fund grants would be used.
“I saw this property transfer somewhere online where it showed that the company that is moving in here paid the $8.5 million for the Donnelley’s property. So, are we applying for a grant to reimburse them for the whole $8.5 million?” Trigg said.
The bond fund grant is one that the company had applied for through the state to help not only with the purchase of the property, but with their operating expenses and the equipment, Armstrong said.