FEAM AERO has announced the construction of its second hangar at Cincinnati/Northern Kentucky International Airport (CVG), cementing its presence at this global e-commerce hub while creating nearly 200 additional high-paying aircraft mechanic jobs.
The $40.2 million state-of-the-art three-bay facility will be constructed from the ground up and will encompass 150,000 square feet of hangar, back-shop, and storeroom space, in addition to 5,000 square feet of administrative offices. This facility will have the ability to accommodate wide-body aircraft types up to 767 fully enclosed and will include three parking spots in the adjacent ramp space.
Rendering of Feam expanstion.
The new facility will be completed by the end of 2023 and will complement FEAM’s existing hangar at CVG, which spans over 100,000-square-feet of state-of-the-art workspace and currently employs 300 technicians.
“It is an incredible accomplishment to continue to expand FEAM’s presence at CVG, an organization who is truly innovating in the e-commerce space,” said Fred Murphy, chief executive officer, FEAM AERO. “This new operation will provide ample aircraft maintenance capacity and resources for CVG’s growing cargo operations. Our initial success with our first hangar, and immediate demand for expansion, confirms that we are in the right place, at the right time, with the right partners. I commend our dedicated and relentless team of professionals that embody the core values of our company every day; it is because of them that we can maintain our high standard of quality and service as we grow and enter new markets.”
“We congratulate FEAM on their success and business growth,” said Candace McGraw, chief executive officer, CVG Airport. “They have been a terrific partner in which we share a vision to further develop needed infrastructure and services to support continued growth of cargo carriers at CVG. The airport’s current strategic plan outlines the transformational impact we can make for our region, and this project does just that through job creation and capacity building to grow and diversify cargo operations.”
Boone County Judge/Executive Gary Moore congratulated FEAM AERO on the announcement.
“Aviation maintenance is a high-growth subcluster in our supply chain management and support services industry in Northern Kentucky,” said Judge/Executive Moore. “We welcome these new, high-paying jobs that will keep an increasing amount of air cargo moving in and out of CVG.”
Northern Kentucky Tri-ED CEO Lee Crume noted FEAM AERO’s continued investment at CVG is a significant contributor to the strength of the aviation sector in the Cincinnati region and the Commonwealth.
“We have tremendous assets in the Amazon Air and DHL air cargo hubs at CVG driving significant growth in aviation maintenance with highly technical and high-paying jobs being created by FEAM AERO,” Crume said. “We are using our Target Industry Analysis to identify new manufacturing operations that support the expansion of companies like FEAM, so that components and parts are easily accessible in the region.”
FEAM AERO’s investment and planned job creation furthers recent economic momentum in the Commonwealth, as the state builds back stronger from the effects of the pandemic.
FEAM is leading the industry through uncertain times with continued growth and unprecedented global expansion. As the company works to expand its European presence, it is also investing heavily in creating a resilient and robust workforce in major markets throughout the United States.
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1.75 million in tax incentives based on the company’s investment of $40.2 million and annual targets of:
• Creation and maintenance of 124 Kentucky-resident, full-time jobs across 10 years; and
• Paying an average hourly wage of $38.50 including benefits across those jobs.
Additionally, KEDFA approved FEAM AERO for up to $300,000 in 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, FEAM AERO 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.
The addition of this new hangar to FEAM’s existing presence at CVG will create nearly 200 aircraft maintenance professional positions and more than fifty administrative and material specialist jobs. FEAM will launch a nationwide recruitment campaign to fill these high-income earning roles, furthering economic development in the local and surrounding communities.
A groundbreaking ceremony for FEAM AERO’s new hangar is tentatively planned for summer 2022 with work to be completed by the end of 2023.
