Zap's plans to build a factory in Kentucky
have once again run into the harsh light of reality as the cost escalated and money has become scarce. The plant, originally projected to cost $84 million now has a price tag of up to $200 million. The state of Kentucky originally put up $48 million in tax breaks, but one of the main investors in Integrity Manufacturing, as the joint venture is known, has bailed out of the project. GE Capital had previously agreed to buy $125 million in bonds for the factory but has now withdrawn that offer. The joint venture is now hoping to tap into federal money from a DOE fund for alternative energy projects. CEO Randall Waldman is now looking at other options such as building elsewhere if someone will provide funds or else scaling back and building a smaller factory and expanding in stages over time. Thanks to Michael for the tip!
[Source: Lexington News