KY: Shyne Labs Begins 60-Job Hemp Processing Operation in Franklin | Trade and Industry Development

KY: Shyne Labs Begins 60-Job Hemp Processing Operation in Franklin

Jul 03, 2020
Despite the pandemic causing unprecedented hardship and uncertainty, Kentucky is moving ahead. Hemp processor Shyne Labs is committed to create 60 full-time jobs for Kentuckians during the coming months with a new $9 million facility in Simpson County.
 
“Shyne Labs’ decision to locate in Kentucky brings with it important job opportunities for residents of South Central Kentucky,” Gov. Andy Beshear said. “I’m grateful to the company for taking this step forward in these tumultuous times, and I deeply appreciate the investment in our commonwealth.”
 
With over a decade of experience in the cultivation and extraction industry, company leaders founded Shyne Labs in 2019, uprooted from California and relocated to a 12,400-square-foot building in Franklin’s Wilkey North Industrial Park. Operations at its first Kentucky facility began in April. The company currently employs about 20 people at the Franklin facility – including recent graduates from Western Kentucky University and the University of Kentucky – and currently is looking to add to its diverse staff.
 
At the Franklin facility, the company extracts CBD oil from Kentucky-grown industrial hemp and produces a variety of CBD products, including full-/broad-spectrum oil, isolate powder and water-soluble CBD used for food and beverage products.
 
“Moving from California has been quite a difference, definitely for the better,” said Allan Huang, president of Shyne Labs. “Franklin is a very business-friendly city and welcomed our company to the community. I appreciate the work that the Franklin-Simpson Industrial Authority and the Kentucky Cabinet for Economic Development did to help us locate our new plant in Simpson County.”
 
The facility can process up to 18,000 pounds of hemp plant material per day and convert it to pure CBD isolate powder.
 
“We want to work with farmers from the local region who need their hemp processed, especially those who plan on growing again this year,” said Jon Miller, Shyne Labs COO and co-owner. “We see this as a long-term opportunity and are looking to build relationships with people in the industry for the foreseeable future. We understand that many in the industry have been misled and disenfranchised by other hemp processing facilities, and we are going to strive to do better. We provide transparency on production, expectations and pricing. The CBD industry is still young and volatile, but we see massive growth happening within the next few years.”
 
Shyne Labs is a fully licensed hemp extraction operation offering a range of extraction and refining services. After beginning in Irwindale, Calif., company leaders now aim to grow Shyne Labs’ presence in the CBD industry with strong roots in Kentucky.
 
State Sen. David Givens, of Greensburg, said the company will help advance Kentucky’s agriculture industry.
 
“This investment by Shyne Labs in this community is certainly welcome news,” Sen.0 Givens said. “The new facility, and the jobs it will bring with it, provides Simpson County the opportunity to help Kentucky agriculture continue to lead in this field.”
 
State Rep. Wilson Stone, of Scottsville, thanked the company for its investment in Franklin.
 
“The rise of the hemp industry in Kentucky is one of farming’s great success stories in recent years, so I am certainly happy to welcome Shyne Labs to Franklin and want to thank its leaders for investing so much here and creating these jobs,” Rep. Stone said. “This new operation will give our farmers even more opportunities to benefit from hemp, while making its products more widely available to all Kentuckians.”
 
Franklin Mayor Larry Dixon welcomed the company’s plans to create jobs for Kentuckians in the area.
 
“We are very excited to have Shyne Labs locate in our community,” Mayor Dixon said. “The company will be providing some very high-paying jobs, which will create some excellent career opportunities for Franklin’s citizens.”
 
Simpson County Judge-Executive Mason Barnes said he also expected those in the region to benefit from Shyne Labs locating in the county.
 
“Shyne Labs will not only be providing good industrial jobs, but they will also create opportunities for our area farmers to have a new crop to sell to our local industry,” Judge-Executive Barnes said.
 
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in September preliminarily approved a five-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $250,000 in tax incentives based on the company’s eligible investment of $3.5 million and the following annual targets meeting the eligibility criteria of the program:
  • Creation and maintenance of 30 Kentucky-resident, full-time jobs across five years
  • Paying an average hourly wage of $27 including benefits across those jobs
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, Shyne Labs can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.