Investment will support increased economic development in Northeast Illinois
SPRINGFIELD – Governor Rod R. Blagojevich today announced a nearly $5.7 million investment package for Siemens Energy & Automation, Inc., the largest producer of wind turbine gear drives in the United States, to develop a second plant in Elgin, IL for its Mechanical Drives and Winergy businesses. The move will create approximately 355 new jobs. The state’s investment supports a $20 million investment by Siemens, and comes as a part of Opportunity Returns, the Governor’s comprehensive economic development strategy to create jobs and build the economy in Northeast Illinois.
“Economic development and strong environmental policies go hand in hand. Our investments on the local level strengthen the economic vitality of our communities and also promote environmental sustainability. Supporting the green tech industry in Illinois not only creates better jobs but also ensures our planet's health for generations to come,” said Gov. Blagojevich.
In Elgin, Siemens designs and manufactures high precision/high torque mechanical gear drives for the wind industry as well as for the cement, coal and minerals, and oil and gas industries. The new plant, expected to be completed in March 2009, will create approximately 300 new jobs in production and 55 new office jobs over the next three to four years; the plant in Elgin currently employees 150 people. A groundbreaking ceremony will be held on June 25, 2008 for the new plant.
“This expansion is great news for the people of Elgin and the entire region because it signifies continued economic growth for Northeast Illinois. It’s important that we continue to make investments like these so we can create more good jobs, build the state’s economy and help the people in our communities to prosper,” said Sen. Michael Noland (D-Elgin).
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 and retention and Employer Training Investment Program (ETIP) job training funds that will help enhance the skills of its workforce. In addition, the company could benefit from being located in an Illinois Enterprise Zone. The state also provided a $1.25 million Wind Energy Development Grant to Siemens for the development of this project.
“By investing in companies like Siemens, we’re continuing to make sound investments in our communities. We understand that by making these investments we are helping to create better jobs, increase economic development and spur innovation across the state,” said Jack Lavin, director of the Illinois Department of Commerce and Economic Opportunity.
“Siemens remains committed to its employees and manufacturing in the United States,” said Dennis Sadlowski, President and CEO of Siemens Energy & Automation. “Combined with the expertise and product knowledge we have in Elgin, the new facility will enable Siemens to increase production of our mechanical drives to help our customers meet the growing demand for sustainable energy resources.”
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.