Governor Rendell: $4.5 Million in New State Investments Help Manufacturers, Agri-Businesses Expand Operations, Create Jobs

HARRISBURG, Pa., March 5 /PRNewswire-USNewswire/ -- Governor Edward G. Rendell today said new state investments will help an international company to locate in Chambersburg and companies in Northampton, Trevose and Philadelphia to expand and create new jobs.

On March 4, the Pennsylvania Industrial Development Authority approved $4.5 million for the four projects in the form of low-interest loans that will leverage $5.6 million in private investments.

"Making strategic investments in small businesses that create jobs is a solid investment for the commonwealth," said Governor Rendell. "Even in a sluggish economy, we're still able to encourage business to relocate here, expand their operations and create jobs by offering the vital investment capital they need to augment and leverage their own efforts."  

One of the approved projects is a $350,000, 15-year loan at 3.75 percent to the Franklin County Area Development Corp., on behalf of DeeTag Ltd., which manufactures hydraulic hoses, valves, cylinders and fittings to the global original equipment manufacturer market. The $1.1 million project will allow DeeTag to supplement the work of existing plants in Ontario, Canada. The new, 15,000-square-foot facility will establish the company's presence in the United States. The company is expected to create 10 new jobs within the next three years.  

The PIDA board also approved:

• A $775,000, 15-year loan at 3.75 percent to Bucks County-based Wescott Steel Inc., which manufactures manganese steel bushings and pins for the mining, automotive and steel industries; railroads; and shot-blasting foundries. The $1.5 million project will allow the company to expand their existing building in Trevose by 12,610 square feet, relocate 22 existing employees, and create three new jobs. The Bucks County Economic Development Corp. is the sponsoring agency.  
• A $2 million PIDA loan to Allentech Inc., which manufactures fabricated aluminum products serving the petroleum and petrochemical distribution markets. The company plans to consolidate its operations and construct a new 60,000-square-foot facility in Northampton.  Allentech Inc., founded in Pennsylvania in 1986, will retain its 50 employees and is expected to create eight new positions within the next three years. The 15-year, 3.75 percent loan, will be applied to the $4 million project and will be administered by Northampton County New Jobs Corp.
• A $1.4 million, 15-year, 3.75 percent loan to E. G. Emil & Sons Inc., for its agri-business, which produces turkey, chicken, pork, and beef products. The $3.5 million project will allow the company to expand its existing operations by an additional 13,868 square feet for cold storage, a loading dock, and receiving and shipping areas. E. G. Emil & Sons Inc. will retain its 32 employees and is expected to create an additional eight jobs within the next three years. The PIDC Financing Corp. is the sponsoring agency.

PIDA provides capital for infrastructure acquisition, creation and renovation, primarily for manufacturers, industrial developers, research and development firms, agricultural processors and employers looking to establish national or regional headquarters in Pennsylvania.

For more information about economic development initiatives in Pennsylvania, call 1-866-466-3972 or visit www.newpa.com.

SOURCE Pennsylvania Office of the Governor