Governor Rendell: Funding for Economic Development Investments, Job Creation Efforts Vital to Pennsylvania's Future Growth

SOUDERTON, Pa., Sept. 5 /PRNewswire-USNewswire/ -- Visiting the construction site of a major business expansion in Montgomery County today, Governor Edward G. Rendell said it is extremely important for legislators to continue funding state investment programs that attract business and create jobs across Pennsylvania.

As he continues to work to end a more than two-month budget impasse that threatens those job creation programs, Governor Rendell began his Labor Day weekend by visiting the future North American headquarters of Almac Group Incorporated. The Northern Ireland-based company is constructing a new, 240,000-square-foot building, in the first phase of its expansion, on a 40-acre greenfield site in Lower Salford Township.

State assistance was critical to the international pharmaceutical and biotechnology services firm's decision to locate its North American operations in Pennsylvania. It had been considering sites in New Jersey, North Carolina and Montana.

"As we prepare to celebrate the contributions that labor has made to our nation, we must also remember our obligation to make sure that good, family sustaining jobs are available to working men and women who need them," Governor Rendell said.

"That is what we have been doing in Pennsylvania with our comprehensive economic development plan. The General Assembly and my administration have made wise, targeted investments that have helped businesses to thrive and grow. Continuing our job creation efforts now is crucial to helping our state recover from the national economic downturn," he added.

The Governor cited Almac as an example of Pennsylvania's successful business incentive programs, some of which are at risk of being defunded in the current negotiations over a new state budget. Governor Rendell is seeking to maintain adequate dollar levels in those line items.

The Senate and House Republican plans would completely eliminate key economic development tools, including:

• World Trade PA, which attracts companies to Pennsylvania and helps Pennsylvania companies access the global market
• the Opportunity Grant program
• Business Retention & Expansion
• Infrastructure Development
  

The Republican budget plans would also make dramatic cuts to other important economic development programs, including Infrastructure & Facilities Improvement Grants and Marketing to Attract Business.

"Many of the incentives that helped bring Almac here would be totally eliminated or decimated under the Republican budget proposal," Governor Rendell said. "To help grow our economy and get Pennsylvanians back to work, we need these effective economic development tools now more than ever."

Construction of Almac's new headquarters in Montgomery County began last year. Upon completion of the first phase, expected in 2010, Almac will combine two separate Pennsylvania divisions that currently operate in Audubon and Yardley and provide 510 jobs.

Future expansion at the site will approach one million square feet as Almac makes a capital investment of $100 million. Within three years, the company expects to add 262 jobs at an average wage of $60,000, and by 2016 expects to create up to 550 additional jobs.

The Governor's Action Team (GAT) provided assistance through a number of programs:

• Infrastructure and Facilities Improvement Program - $4.5 million grant;
• Pennsylvania Industrial Development Authority - $2 million loan;
• Infrastructure Development Program - $1.25 million;
• Opportunity Grant Program - $400,000;
• Customized Job Training Funds - $100,000;
• Job Creation Tax Credits - $786,000;
• RACP - $3 million.
  

Both the Infrastructure Development and Opportunity Grant programs are eliminated in budget plans proposed by Republican legislators. The Department of Community and Economic Development's Office of International Business Development, which often begins the groundwork for getting foreign companies to locate in Pennsylvania, is also in danger of being zeroed out by the Republican Senate-favored budget.

"It would be shortsighted to scale back our attempts to attract and expand business, just when our economy needs help the most," Governor Rendell said. "During this downturn we have to tighten our belts and address our budget deficit, and state government is doing that, but we also have to invest in the state's long term future."

The Governor said Pennsylvania's World Trade PA initiative, which he created in 2006, helped Pennsylvania businesses export more than $34 billion worth of goods in 2008, or 18 percent more than in 2007 and more than double the $16.3 billion total reported in 2003.

Last year, DCED's Office of International Business Development directly assisted 1,360 companies through its 24 overseas trade representatives. In addition, the Office's Center for Trade Development organized and led 17 trade delegations to 13 foreign markets, awarded more than 300 market access grants totaling $880,000 to 170 of the commonwealth's exporters, and facilitated $342 million in export sales for 268 Pennsylvania companies.

Because of the budget impasse, the commonwealth had to cancel this month's international week, which last year helped more than 350 Pennsylvania companies learn what it takes to succeed in new, overseas markets.

GAT assistance helped company officials justify Almac's continued growth in Pennsylvania over the next decade.

"As we considered options for expansion over the last four years, we were impressed by the keen interest and support shown by Pennsylvania's Department of Community and Economic Development. In particular, the engagement of the Office of International Development's Investment Representative for the United Kingdom (UK), Richard Kilner, with Almac's Board in the UK was key as we made the decision to expand in Pennsylvania. This builds on the excellent relationships we have established since first opening for business here in 1996," said Almac's Michael Bacon, Vice President of Finance for North America.

Headquartered in Northern Ireland, Almac is a $600 million company that provides integrated research, development and manufacturing services to the pharmaceutical and biotechnology industries. It employs nearly 2,000 people throughout Europe and in the U.S. More than 600 companies worldwide use Almac's services.

For more information about economic development initiatives in Pennsylvania, visit www.newpa.com.

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 newsletter, visit www.governor.state.pa.us.

    CONTACT:
    Gary Tuma
    717-783-1116

    Steve Weitzman, DCED
    717-503-6960 (cell)

SOURCE Pennsylvania Office of the Governor