Midcoast Aviation Will Create Up to 200 New Jobs in Sauget as Part of Expansion

CHICAGO – In his continued efforts to help Illinois businesses grow and create more jobs, Gov. Rod R. Blagojevich today announced a more than $4 million investment package for Midcoast Aviation, an aviation maintenance sales and service company, which will help it expand and establish a new aircraft completion center in Sauget.  As part of the expansion, the company will create 200 new jobs within the first two years of operation.  This business investment package comes as a part of Opportunity Returns, the Governor’s comprehensive economic development strategy to continue creating new jobs and spurring more growth in Southwest Illinois. 

“Growing companies like Midcoast Aviation have many choices for where they want to locate, and this is another good example of an expanding business continuing to invest and create jobs in Illinois by capitalizing on all of the strategic advantages of this region.  By creating a business climate that encourages innovation and investment, we are helping many companies like Midcoast Aviation grow, while putting even more people to work,” Gov. Blagojevich said.

Midcoast Aviation, founded in 1971, began as a small, fixed-base operator offering fuel and minor maintenance services and has continually grown over the years with sales reaching more than $200 million today.  One of Midcoast’s primary focuses is the refurbishing and finishing of business and private jets, where it currently has the capacity to handle planes as large as Bombardier Global Express.  The company was acquired by Jet Aviation in March 2006 and seeks to establish a larger finishing center to accommodate larger jets, such as the Boeing business jets and Airbus A318 and 319.  As part of this expansion, the company will invest $17.5 million to build a new finishing facility with hangar and ramp improvements.  The company considered existing hangars in Arkansas and Arizona or building in St. Louis. 
 
“We are grateful for the support of the state of Illinois and Governor Blagojevich.  Midcoast employs more than 1,000 people in Southern Illinois.  With this continued investment in our organization, we will be positioned to provide excellent career opportunities to even more workers in the future,” said Kurt Sutterer, Midcoast president.

The Illinois Department of Commerce and Economic Opportunity (DCEO) is administering the business investment package.  It includes Economic Development for a Growing Economy (EDGE) corporate income tax credits over the next ten years based on job creation; Employer Training Investment Program (ETIP) job training funds that will help enhance the skills of its workforce; an infrastructure grant for ramp improvements; and additional financial benefits, such as sales tax exemptions and tax credits for job creation, resulting from the company’s location within an Enterprise Zone.

“In order to continue developing a strong statewide economy, we must continue to make the right kinds of localized investments in our growing companies that lead to more good-paying jobs.  Gov. Blagojevich’s support for Midcoast Aviation is doing just that, and we look forward to its continued growth in St. Clair County,” said State Senator James Clayborne (D-East St. Louis).

“Midcoast Aviation is an important member of our regional business community, and Gov. Blagojevich and I are delighted to be supporting its expansion and job growth in Sauget.  Together, we will continue investing in companies that are investing in Southwest Illinois and creating more opportunities for our working families,” said State Rep. Tom Holbrook (D-Belleville).

“Gov. Blagojevich and I are excited to be working together with Midcoast Aviation, a successful, growing company, to make the necessary infrastructure improvements and create new jobs here in Sauget.  By partnering with companies like Midcoast, we’re giving them the tools they need to increase their competitiveness and keep our economy moving forward,” DCEO Director Jack Lavin said.

Since January 2004, Illinois has gained almost 174,000 jobs, which is best in the Midwest.  Illinois led the nation in new job growth in January 2007 with 19,100 new jobs.  In 2006, Illinois gained 71,000 new jobs, which is the best calendar year gain since 2000.  Over the last 4 years, from January 2003 to December 2006, Illinois had the second largest unemployment rate drop in the nation.  The federal Bureau of Labor Statistics and the Illinois Department of Employment Security compiled these statistics.

Gov. Blagojevich’s Opportunity Returns regional economic development strategy is the most aggressive, comprehensive approach to creating jobs in Illinois’ history.  Since a one-size-fits-all approach to economic development just doesn’t work, the Governor has divided the state into 10 regions – each with a regional team that is empowered and expected to rapidly respond to opportunities and challenges.  Opportunity Returns is about tangible, specific actions to make each region more accessible, more marketable, more entrepreneurial and more attractive to businesses.  It is about upgrading the skills of the local workforce, increasing the access to capital, opening new markets, improving infrastructure, and creating and retaining jobs.  Opportunity Returns is about successfully partnering with companies and communities, both large and small, to help all of Illinois reach its economic potential.