WEIDMANN Groundbreaking Marks NMTC-Financed $40 Million Expansion
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“Today’s event demonstrates WEIDMANN’s commitment to the region and to maintaining its leadership position in the industry,” said Jurg Brunner, CEO of WICOR Americas, the parent holding company for WEIDMANN Electrical Technology, Inc. “We appreciate the critical roles played by all the organizations here today,” Brunner said.
WETI produces electrical insulation material for transformers. The product produced in the St. Johnsbury plant is present in roughly 75% of all power transformers in North America. The project expands the facility and upgrades the equipment used in the drying process.
“Encouraging companies to invest in Vermont by providing favorable financing was the reason Housing Vermont competed to become a New Markets Tax Credit allocatee,” explained Housing Vermont President Nancy Owens. “Thanks to the help of Senator Leahy, we are able to translate our lengthy experience in the housing tax credit market to the New Markets Tax Credit arena to stimulate economic activity and create good jobs in disadvantaged areas of Vermont,” Owens said.
Owens also noted that two other nonprofits—the Massachusetts Housing Investment Corporation (MHIC) and the National Development Council—joined with Housing Vermont to provide $35.6 million in favorable financing.
According to Deborah Favreau, Senior Investment Officer for MHIC, “New Markets Tax Credit financing was a perfect fit for WEIDMANN’s expansion and equipment upgrades. This project is exactly what the New Markets program was created for – to stimulate economic development, to attract new investment and to create or retain good jobs where they are most needed. With the substantial job loss in manufacturing suffered by both northern Vermont and New Hampshire over the past 20 years, the retention of the WEIDMANN jobs was clearly critical for the region.”
“The National Development Council is proud to provide a portion of our NMTC allocation, in partnership with Housing Vermont and MHIC,” said Robert Davenport, NDC president. “With this investment, WETI’s enhanced competitiveness will allow it to maintain a dominant position in what is expected to be a growing North American market. While the company could have chosen to upgrade its operations in one of its other international locations, NMTC provided the incentive for them to make the investment here, in rural Vermont, where jobs are scarce, especially the well-paying manufacturing jobs WETI provides,” Davenport added.
The Northeast Kingdom Manufacturing Training Program is the culmination of years of planning and partnerships with area businesses, NCIC, Lyndon State College and the White Mountains Community College. The NMTC funds were used to purchase advanced CNC machines for the Training Program.
“We have worked a long time to see this happen, so it is gratifying and exciting to realize the first classes begin next week,” said Jon Freeman, President of NCIC.
Hill Engineering is the architect and Pizzagalli Construction is the general contractor for the plant expansion. Construction work is expected to be completed by February 2012 and equipment installation will continue until April 2012. Start-up and commissioning is planned for September 2012.