Festo USA exemplifies benefits of Foreign Trade Zone involvement in Greater Cincinnati
Greater Cincinnati has long been recognized, both nationally and internationally, for its enviable position as a “power port” on the Ohio River. Our unique access to major markets throughout North America places the region among the world’s best places to do business.
Our Foreign Trade Zones (FTZ) are especially beneficial for businesses that involve assembly, manufacturing, salvaging, repackaging, mixing, testing, relabeling, storage, processing, destruction, manipulation, and/or sampling. These restricted-access sites ease the flow of foreign commerce through our region and on to the rest of the United States by eliminating, deferring, or reducing customs duties on imported and exported/re-exported goods.
“Our two Foreign Trade Zones are highly utilized, with multiple companies taking full advantage of their benefits,” says Melissa Johnson, Vice President of Industrial Development and Logistics for the The Port, which serves as the managing entity for our region’s two FTZs. “It’s an advantageous program that we want to make sure is not a well-kept secret.”
Festo USA: A Study in FTZ Success
For a great local example of how FTZ alignment pays off for companies with import volumes in excess of $3 million annually, look at Festo USA. Amid rising customer expectations and a reputation for innovation in supply chain and stock management, the German-based pneumatic and electric automation technology manufacturer required a location that would position it for growth within the North American market.
In 2013, Festo invested $60 million to place a distribution and manufacturing facility in Mason, Ohio, close to the Greater Cincinnati FTZ #46 serving Brown, Butler, Clermont, Hamilton, and Warren counties. The facility opened in 2015.
Three years later, recognizing the success of its Mason facility, Festo invested an additional $90 million to expand operations and will look to add 350 more jobs over the next five years. Festo’s second investment in Greater Cincinnati represents the company’s vision for future growth and expansion in the region.
Did you know?
Ready to learn more about the benefits of joining one of Greater Cincinnati’s two Foreign Trade Zones? The application process is straightforward, and the first step for any companies interested in joining a local FTZ is to tap into REDI Cincinnati’s extensive research and expertise with regard to site selection and state and local incentive programs.