Erie Shipbuilding to Undergo Expansion

Monday, January 08, 2007
Pennsylvania Governor Edward G. Rendell announced that three Erie County manufacturers – including the county's largest employer -- plan to invest more than $19 million to grow their respective operations in northwest Pennsylvania, adding 385 new jobs to the local economy over the next three years. The Governor said the state is supporting the growth through a series of investments totaling more than $1.5 million, which include grants and tax credits. Today's announcement included $500,000 to the county's largest employer, GE Transportation Systems; $702,250 to Erie Shipbuilding LLC; and $207,000 to National Steel Products Inc., a start-up company in Corry that will make leasehold improvements to a facility that has been mostly vacant for more than 15 years. Department of Community and Economic Development Secretary Governor Rendell. Dennis Yablonsky visited Erie County today to make the announcements on behalf of GE Transportation Systems plans to implement lean manufacturing techniques at its rail plants in Erie and Grove City, Mercer County, a project that is expected to cost $12.8 million. By applying this new operational strategy, the company expects to lower costs and shorten lead times to deliver orders and products. GE Transportation Systems has already fulfilled its commitment to the commonwealth to create 120 new jobs, and is also retaining 4,486 existing jobs in Erie and 915 additional jobs at other Pennsylvania locations.

A $6.4 million expansion project by Erie Shipbuilding LLC will create at least 205 new jobs within three years and retain 26 existing employees. The company is purchasing equipment for its shipbuilding operation, including a first-of-its-kind, multi-million dollar robotic welding system. DCED's offer to Erie Shipbuilding included a $200,000 Opportunity Grant, $92,250 in CJT, and $410,000 in Job Creation Tax Credits (JCTC). In August of last year, Governor Rendell announced $2.5 million in redevelopment assistance capital to help Erie Shipbuilding LLC expand its operations. The company manufactures ships and provides ship maintenance and repair, ship conversions and dry-docking services. It has the largest dry dock on the Great Lakes. GEIDC also worked with the company on its expansion project.

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