← NewsAll
Kentucky lawmakers weigh clawing back incentives for BlueOval SK plant
Summary
Legislative leaders said they will review state incentives given to Ford for the BlueOval SK project after Ford revised plans and reduced expected jobs; the company now plans to shift production and extend the timeline.
Content
The state legislature is preparing to review economic incentives awarded for the BlueOval SK battery project in Hardin County. Ford announced in December it would change the site's plans and convert it to a facility producing battery energy storage systems. The project was first announced in 2021 with expectations of thousands of jobs and a 2025 start date. State leaders say the revisions reduce guaranteed jobs and push back the timetable.
Key facts:
- Senate President Robert Stivers and House Speaker David Osborne said lawmakers expect to examine the incentives and the contract terms tied to the Glendale development.
- Ford's revised plan was reported to shift the site toward battery energy storage systems; the company has said the facility will be online in about 18 months rather than in 2025.
- The article reports more than 1,500 workers are expected to be laid off, with the facility eventually projected to employ about 2,100 people under the revised plan.
- Incentives originally included a $250 million state loan paid up front and benchmarks calling for 2,500 jobs by the end of 2026 and 5,000 jobs by the end of 2031, which state leaders say are now unlikely to be met.
- Governor Andy Beshear said Ford plans to invest an additional $2 billion and that overall investment figures are being reassessed, which state officials say must factor into any review of the incentive package.
Summary:
The change in Ford's plans reduces the project's guaranteed jobs and delays its opening, prompting legislative leaders to say they will review the incentive package and contract provisions. Lawmakers have noted there are callback provisions in the contract and have indicated they will explore how to proceed; discussions with state officials and the company are reported as ongoing.
