December 2014

KMI Group

THE PROJECT

In December 2014, AMCREF Community Capital provided $10 million of NMTC financing to Summit Equipment, LLC, a subsidiary of KMI Group, to expand its operations. KMI manufactures a wide variety of high performance resins and polymersmade from recycled industrial and consumer waste. KMI is the only remaining manufacturing company operating in rural Kenton, TN and one of the largest employers in a high unemployment (11.5%), high poverty (21.4%) census tract. KMI manufactures its own product lines and also produces resins for a diverse group of industries including aerospace, consumer, manufacturing, electronics and automotive, including several Fortune 500 companies.

COMMUNITY IMPACT

  • Job Creation and Support: Up to 279 direct FTEs at full capacity, including 76 created and 15 retained in first year after AMCREF’s investment. KMI wages are well above the local living wage. KMI offers job training, profit sharing, pension plans and paid vacations.
  • Environmental Benefits: KMI utilizes scrap petrochemical feed streams to produce recycled plastic resins. Scrap Buy-Back program and re-pelletizing options encourage and facilitate industrial plastic recycling. KMI works closely with customers to develop customized products from a broad variety of industrial petrochemical-based wastes, thereby reducing landfill waste and improving the use of petroleum-based resources.
  • Community Support and Impacts: KMI is located in a community that has been adversely impacted by numerous manufacturing plant closings and layoffs, including a Goodyear plant that closed in 2011 and employed 1,900 people. KMI is hiring primarily from within the local community and jobs are well-suited to LIPs/LIC residents (most do not require a college degree). KMI often hires through relationships with local and regional trade schools and partners with them for vocational-technical and trade school level training for employees. The NMTC benefit enabled KMI to maintain all of its expansion efforts in Kenton versus transferring some operations to Asia.
  • Economic / Catalytic Effects: Strongly supported by regional and state economic development and community leaders, including financial support and a grant for ISO training.