U.S.-based Valvoline, the global lubricant manufacturer and marketer based in Lexington, Ky., broke ground on a new USD 35 million headquarters on the city’s southeast side last week.

“This is an exciting day as we begin construction on a modern, world-class facility that will reflect the essence of Valvoline’s iconic 150-year-old brand,” said Sam Mitchell, Ashland senior vice president and Valvoline president. “When completed, this new facility will combine Valvoline’s rich legacy of product innovation with an open floor plan, efficient work space design and sustainable footprint.”

The 162,400-square-foot office building is being built for Valvoline’s parent company, Ashland Inc., which plans to lease it. Ashland currently leases space in two buildings for its roughly 600 Lexington, Ky.-based employees. The lease on those two existing campus buildings, which were built for Ashland in the early 1980s, will expire in March 2017.

Verus Partners and Solomon Cordell Buenz are serving as the project developer and architect, respectively. Messer Construction Co. is serving as general contractor. The Kentucky Cabinet for Economic Development and the Lexington-Fayette Urban County Government (LFUCG) have offered up to USD 1 million in support, subject to approval by the Kentucky Economic Development Finance Authority and LFUCG Urban County Council.

In September, Ashland announced plans to spin off Valvoline from Ashland, which is focused on specialty chemicals.

Valvoline has operated in Lexington for about 30 years and employs about 600 people locally. The new building is expected to be completed by February 2017.

“Ashland’s presence in Lexington has always been a vote of confidence in our city’s workforce and quality of life,” Mayor Jim Gray said. “Lexington is a university city that embraces talent, ideas and an entrepreneurial spirit. Ashland is a company that exemplifies those values,” he said.