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.
The announcement came on the heels of other positive news, as Citizens Bank presented the Governor with a check for $150 million to continue its successful Job Bank Program for another two years. Citizens Bank President Ralph Papa also awarded $5 million from the program to the Rotem project.
"All across Pennsylvania, we are making strategic investments in our communities and workforce to attract new business and industry," said Governor Rendell as he stood before the yard's vacant Building 603, which will become Rotem's new headquarters. "Our competitive environment is not only bringing new employers to the state, but helping our existing businesses to expand and succeed.
"Our approach is working because we now have 122,200 more jobs than we did three years ago, our unemployment rate is below the national average, and our pro-growth business tax climate is gaining the attention of national organizations and companies.
"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.
"When we announced this program in March 2004, I felt strongly that the Citizens Job Bank Program would be an exceptional partner in creating new employment opportunities for Pennsylvania's working men and women," Governor Rendell said. "Citizens' goal was to create more than 4,000 jobs in Pennsylvania within three years. They have surpassed that target in just two years by helping 37 companies in 25 counties across the commonwealth create more than 4,100 jobs.
"The Citizens Job Bank program complements my innovative $2.8 billion economic stimulus package and shows the type of public-private sector
partnerships we are able to create," the Governor said. "With below-market interest rates, the Job Bank Program encourages additional investment that improves the quality-of-life for our residents and enhances our communities with new businesses and new employment opportunities."
The latest $150 million commitment will make it possible for more companies, including select business-service and industrial and distribution operations, to qualify for the Job Bank program. Eligible businesses include any public- or privately-owned manufacturing or industrial companies in the commonwealth, or those that relocate here.
Loans are available for between $1 million and $10 million and carry a fixed-interest rate of 4.99 percent for all loans in the first year - currently, more than 2.75 percent below the prime rate. Companies are required to create one job for every $40,000 borrowed. Citizens will continue to waive all fees traditionally tied to loan applications. The terms of the loan require that the specified jobs be created within three years after the funds are borrowed.
"Citizens Bank is committed to Pennsylvania and to growing our economy," said Stephen D. Steinour, chairman and CEO of Citizens Bank of Pennsylvania. "We developed the Citizens Job Bank in partnership with the commonwealth because the program is both good public policy and good business. And with a major new commitment of Job Bank funds, we will expand the impact of the program and keep the momentum going in the effort to create new jobs in Pennsylvania."
Citizens Bank of Pennsylvania is a $35 billion, state-chartered bank with dual headquarters in Pittsburgh and Philadelphia. It has 402 branches and more than 670 ATMs throughout Pennsylvania. It is a subsidiary of Citizens Financial Group Inc., a $155 billion commercial bank holding company. Citizens has more than 1,600 branches, approximately 3,800 ATMs and more than 26,000 employees in a 13-state retail-branch network and has non-branch retail and commercial offices in about 40 states. Citizens, owned by RBS (The Royal Bank of Scotland Group plc), is the eighth-largest commercial
banking company in the United States ranked by deposits.
The Governor's Action Team is made up of economic-development professionals who report directly to Governor Rendell. The team serves as a single point of contact for businesses that are interested in locating or expanding in Pennsylvania.
