First publish date: 04-07-2006
Pennsylvania Governor's Office
Rail Car Builder Moving to Philadelphia Naval Yard
Author: TO News from PA Governor's Office
Pennsylvania Governor Edward G. Rendell announced that one of the world's leading railcar manufacturers, Rotem Company, will move its U.S. headquarters to the Philadelphia Naval Yard with the help of a $2.2 million state investment that will also create more than 215 new jobs within three years.
"Rotem's decision to locate their U.S. headquarters here is proof that Pennsylvania has what it takes for a large, international firm to succeed. Companies know they can find well-educated, hardworking men and women and the investment capital needed to help them grow."
Working with the Philadelphia Industrial Development Corp., the state's Department of Community and Economic Development and the Governor's Action Team tailored an investment package to the company that includes $1.6 million in Pennsylvania Industrial Development Authority loans, a $500,000 loan through the Machinery and Equipment Loan Fund, and $100,000 in Customized Job Training assistance.
Rotem plans to begin work in the third quarter of 2006 to fill a 32-car contract with the North Carolina Transit Authority. The company hopes to reach full-scale production by 2008, with all of the railcars for the U.S. market being assembled at the Philadelphia location.
Last month, the South Korea-based company secured two more deals: a $177 million contract from the Southern California Rail Road Association, and a $244 million deal to assemble 104 Silverliner V rail cars for SEPTA's regional rail system.
"We are proud to call Philadelphia our American home and we look forward to developing a new center of rail car assembly in the United States," said Rotem Chief Operating Officer Yeo-Sung Lee. "Our assembly operation will add to the region's manufacturing base with a state-of-the-art facility that provides good-paying jobs and a profitable outlet for sub-suppliers in the industry."
Company officials joined Governor Rendell in thanking Citizens Bank for its commitment to the project. The Governor noted the success of the Job Bank Program since its debut in 2004, and said the additional $150 million will go a long way in providing new employment opportunities for Pennsylvania's citizens.