PACCAR Parts breaks ground in Kentucky

The $52.2 million distribution center should be operational in 2022.

PACCAR broke ground in Kentucky this week on a distribution center, like this one, that will help it serve the southeastern, central and mid-Atlantic regions of the U.S.

PACCAR Parts, a distributor of aftermarket parts for heavy- and medium-duty trucks, trailers, buses and engines, broke ground on a $52.2 million parts distribution center in Louisville, Kentucky, today. The facility, located in the Louisville Riverport Authority’s Phase 5 development, is expected to create 80 full-time jobs and be operational in 2022.

“PACCAR Parts is a world-class company, and I am proud its leaders chose the commonwealth to expand its global operations,” said Gov. Andy Beshear.

Company leaders and local officials and representatives from Louisville-based Abel Construction, Luckett & Farley, Kenworth of Louisville, TLG Peterbilt-Louisville and Dynacraft broke ground on the 260,000-square-foot facility for motor vehicle-related parts distribution, including original equipment and replacement parts and aftermarket products. The new facility, when complete, will be the company’s 19th parts distribution center and will bring its global footprint to more than 3.4 million square feet of warehouse space.

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“The Louisville parts distribution center will use the latest technologies to reduce the time between order placement and delivery, allowing us to maximize uptime for customers,” said Jim Walenczak, PACCAR Parts assistant general manager – operations.

The Louisville facility will serve the central, mid-Atlantic and southeastern regions of the United States.

PACCAR Parts is a division of PACCAR Inc., a Washington-based manufacturer of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF names with roots dating back to the early 1900s. The company distributes products globally through a dealer network that includes 2,200 locations worldwide. Its additional services include the design and manufacture of advanced diesel engines, financial services, information technology and parts distribution. Aftermarket support includes call centers operating 24 hours a day with technologically advanced systems to enhance inventory control and expedite order processing.

PACCAR Parts’ decision to make Kentucky its latest home started in 2019, when it received preliminary approval of a 10-year incentive agreement with the Kentucky Economic Development Finance Authority under the Kentucky Business Investment Program. The performance-based agreement can provide up to $500,000 in tax incentives based on the company’s investment of $52.2 million and annual targets of 80 Kentucky-resident, full-time jobs across 10 years, with those jobs paying an average hourly wage of $23.50, including benefits.

Additionally, PACCAR was approved for up to $1 million in tax incentives through the Kentucky Enterprise Investment Act that will allow the company to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing. Also, the company has access to Kentucky Skills Network for no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.

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