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PA Governor Rendell Says State Will Help Major Berks County Firm to Expand, Create 500 Jobs

Posted on: Tuesday, 19 December 2006, 15:13 CST

LYON STATION, Pa., Dec. 19 /PRNewswire-USNewswire/ -- Pennsylvania Governor Edward G. Rendell today announced a strategic investment by the commonwealth that will help Berks County's largest employer to expand, creating at least 500 new jobs within three years and retaining 4,828 existing positions.

The Governor said the state's $21.4 million investment in the first phase of East Penn Manufacturing Co.'s plans will leverage $108 million in private investment toward the $130 million project, boosting the regional economy and creating new opportunities for employees and residents.

"Having a leading global manufacturer like East Penn choose to invest and grow in Pennsylvania is important to the entire state," Governor Rendell added. "The company's decision reflects the work we've done to improve Pennsylvania's business climate and create an environment where businesses can succeed. With our business-friendly tax structure and easy access to investment capital, this leading battery manufacturer has found a home where they can be competitive in the worldwide marketplace.

"This state support will help make possible a project that will create new employment opportunities for 500 people. This is the same type of strategic investment that we've made again and again throughout the commonwealth to rebuild our economy and revitalize our communities."

Governor Rendell announced the state investment today during a visit to the company's headquarters. The state grants and loans will help East Penn to expand its waste water treatment facility, which will allow for the expansion of its entire operation. The first phase of the project includes construction of a new battery plant, a new distribution facility and related infrastructure. The company will also expand its existing battery plants and health and safety center.

The Greater Berks Development Fund supported East Penn's efforts to obtain a financial package of up to $21,416,800 from the commonwealth that includes a $6,416,800 loan through the Pennsylvania Infrastructure Investment Authority (PENNVEST); $8 million through the PennWorks program ($5 million loan / $3 million grant); $3 million in Infrastructure and Facilities Improvement Program (IFIP) grants; a $2 million loan through the Pennsylvania Industrial Development Authority (PIDA); a $500,000 grant through the Opportunity Grant Program (OGP); $500,000 in Customized Job Training Funds; and $1 million in Job Creation Tax Credits.

Citizens Bank has also approved a loan of up to $10 million for East Penn through the Citizens Job Bank program, which offers low-interest loans to companies that commit to creating or expanding jobs in Pennsylvania.

Berks County's October unemployment rate of 4.1 percent has dropped 2.2 percent since Governor Rendell took office in 2003. There are 7,800 more people working today in the county than in 2003.

"East Penn has experienced steady growth in Berks County since the company was founded in 1946," said East Penn founder and chairman DeLight Breidegam. "Since then, we have invested heavily not only in the buildings and machinery you see today, but in the company's most valuable resource -- the people of East Penn. Their commitment to quality, innovation, and service is unmatched and at the heart of what makes this company and its products special.

"Cooperation with the Governor's administration and the commonwealth will help our company continue to grow, expand and create quality jobs here in Pennsylvania while remaining at the forefront of environmental protection."

East Penn is a leading manufacturer of high quality lead-acid batteries and accessories for the commercial, marine, automotive, telecommunications, industrial and stationary markets. With more than 490 acres, East Penn claims to have the largest, most modern single-site battery manufacturing facility in the world. The company was also named one of Fortune's "100 Best Companies to Work For" in 2006. More information about East Penn is available at http://www.eastpenn-deka.com/.

State support for this project was coordinated by the Governor's Action Team, economic development professionals who serve as a single point-of- contact for businesses considering locating or expanding in Pennsylvania. The team works with domestic and international business consultants on projects that offer significant investment and job creation opportunities.

Since 2003, 771 GAT projects have been completed statewide resulting in commitments for the creation of 80,349 new jobs and the retention of 195,907 existing positions. The commonwealth has offered more than $1.4 billion in assistance for these projects, which will leverage more than $8.79 billion in additional investment. For information on the Governor's Action Team and other DCED programs, visit http://www.newpa.com/ or call 1-866-GONEWPA (1-866-466- 3972).

The Rendell Administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit his Web site at: http://www.governor.state.pa.us/.

CONTACT: Michael Smith, Pennsylvania Office of the Governor, +1-717-783-1116; or Penny Kline (DCED), +1-717-783-1132.

Pennsylvania Office of the Governor

CONTACT: Michael Smith, Pennsylvania Office of the Governor,+1-717-783-1116; or Penny Kline (DCED), +1-717-783-1132

Web site: http://www.governor.state.pa.us/http://www.eastpenn-deka.com/http://www.newpa.com/

Source: PRNewswire-USNewswire

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