Kemmerich no longer building in Murray

The Murray-Calloway County Economic Development Corporation announced this week Kemmerich Metal Engineering, a German-based automotive company, will no longer be establishing its U.S. headquarters in Murray.

News of the joint venture between Kemmerich and the MCEDC, set to bring an estimated 120 jobs to Murray, was announced last January by Gov. Steve Beshear and the MCEDC in the CFSB center.

In a press release Wednesday, Matt Manning, Murray city coordinator and president of the MCEDC, said plans for the establishment of a manufacturing operation in Murray have fallen through due to a dispute over funding of the project.

Manning said plans to build the facility were originally estimated by Kemmerich to be approximately $6 million, however, the company’s next subsequent bid for construction costs totaled $12 million.

The MCEDC requested additional assurance from Kemmerich that it would be compensated for the additional funds needed to be provided, however, Manning said ultimately the two parties could not come to an agreement.

“When this project began, we put together an aggressive financing package that would aid the construction of a new facility for Kemmerich,” Manning said. “Unfortunately, the company’s cost estimate proved to be unrealistic and the subsequent bids came in at approximately double what had been projected. Obviously, this created major challenges both teams.”

“While the MCEDC is willing to take reasonable risks to help create good jobs for the community, we also have to be good stewards of the resources we have,” Manning said.

German automotive supplier, iwis, which announced it would be locating a manufacturing plant in Murray in the old Webasto building last November, still has plans to begin production this fall bringing with them an estimated 75 new jobs.


Staff Report