MURRAY, Ky. (AP) — An economic development official says a German company won't be locating its U.S. headquarters and a manufacturing facility in western Kentucky.
Media reported that Murray-Calloway County Economic Development Corporation President Mark Manning said the organization nixed the deal it had with automotive supplier Kemmerich to locate at the Murray West Industrial Park. He said construction costs for the building were higher than anticipated and the company did not provide a requested corporate guarantee.
"Sometimes you get into a situation where things change," Manning said. "In this case, the cost of the building spiraled out of control based on their design."
He said the project cost came in at $8 million to $12 million
"We all agreed that with the increased project cost size that we needed more assurances from the corporate parent of the company and they were not willing to do that," he said. "Even if we could have funded it, we could have put ourselves in a situation where we could have been in the middle of construction, or a year later, and the company, for whatever reason, could have canceled the project and we would be left holding the bag."
The economic development corporation had announced earlier this year that the company would invest $12.2 million in the project, which would produce 120 full-time jobs.