Governor Rendell Says Kardex AG Will Locate U.S. Headquarters in Mifflin County; Create, Retain 100 Jobs

PA Leverages $400,000 Funding Offer to Attract $4.5 Million Private Investment

HARRISBURG, Pa., April 13 /PRNewswire-USNewswire/ -- A leading provider of storage and retrieval systems will open its U.S. headquarters in Lewistown, Mifflin County, and create at least 50 jobs within three years while retaining 50 existing positions, Governor Edward G. Rendell said today.

Kardex USA, a subsidiary of Switzerland-based Kardex AG, will consolidate its U.S. operations and expand its existing facility in Lewistown, where it will also establish its headquarters.

According to the Governor, by strategically using its resources, the state was able to secure a private investment of $4.5 million toward the project -- more than 10-times greater than the state's offer of $400,000.

"Kardex could have chosen to locate anywhere in the United States. Instead, it decided to stay and expand in Pennsylvania because we were willing to invest in its future, its workers and the Lewistown community," said Governor Rendell. "The commonwealth is making this investment – and many similar investments around the state – because it helps to create jobs for Pennsylvanians and leverages private investment into our communities."

Governor Rendell said his proposed budget continues to invest in proven job creation and economic development strategies that have helped to keep Pennsylvania's unemployment rate below the national average. The proposed budget increases funding for other job creation programs such as opportunity grants, customized job training, infrastructure development, and infrastructure facilities and improvement grants.

"Despite the tough economy and a tight budget situation, we need to continue investing in our state and in our workers so that when the economy fully recovers, we're in a position to capitalize on the opportunities to attract new businesses and create jobs," Governor Rendell added.

Kardex USA Inc. is a division of Kardex Remstar International Group, which is owned by Kardex AG, a publicly held holding company. Kardex Remstar is one of the leading providers of automated storage and retrieval systems. Its products and systems are designed to increase productivity and accuracy while saving floor space.

"For a European company active in the U.S. market, it is very important to have a manufacturing facility in the United States in order to save transport costs, avoid currency fluctuations, and last, but not least, to be close to our customers and dealers," said Kardex AG CEO Jos DeVuyst. "The investment of approximately $4.5 million in the Lewistown facility will not only allow us to increase the capacity of this plant, it will also allow us to produce with a higher efficiency and better serve our customers."

The project was coordinated by the Governor's Action Team, economic development professionals who work directly with businesses that are considering locating or expanding in the state.

The Mifflin County Industrial Development Corp. worked with the company and the Governor's Action Team to secure a funding offer from the Department of Community and Economic Development for the project that includes a $200,000 opportunity grant, $100,000 in job training assistance, and $100,000 in job creation tax credits.  

"Projects of this importance don't happen without partners and we certainly appreciate all the help from the commonwealth. Kardex's decision has excited our community," said Gary Oden, chairman of the MCIDC board. "Kardex is the largest manufacturer at the MCIDC Plaza, which is home to 22 mostly small businesses, and it is sure to be an important addition to central Pennsylvania's economy."

Since Governor Rendell took office in 2003, GAT has successfully completed 1,224 projects, resulting in commitments to create 131,169 new jobs and retain 308,496 existing positions. The commonwealth has offered more than $2.3 billion in assistance for these projects, which will leverage more than $16.8 billion in additional investment.

For more information on Kardex, visit www.kri-group.com/en/.

For more information on the Governor's Action Team and other Department of Community and Economic Development programs, visit www.NewPA.com or call 1-866-466-3972.

SOURCE Pennsylvania Office of the Governor