Economic Development

News & Events

March 15, 2002

CHESTER TO GAIN $52M INVESTMENT
AvestaPolarit & Allvac Join Teams To Create 70 New Jobs

RICHBURG - Chester County companies AvestaPolarit and Allvac have joined forces on a joint processing agreement and have announced expansions resulting in 70 new jobs and a $52 million investment between the two plants.

"We're excited for the whole county," said John Weir, Chester County supervisor. "This is a heck of an investment."

AvestaPolarit, located at 3043 Crenshaw Parkway off S.C. 9, makes stainless steel bars. Allvac, located about seven miles away at 4374 Lancaster Highway, shapes high performance metal used in products from pacemaker wires to the NASA Space Shuttle.

The 20-year agreement allows AvestaPolarit to process stainless steel bars and rods at Allvac and allows Allvac to process high performance metals at AvestaPolarit.

The two companies have been working together since 1994, according to written statements issued Wednesday.

Allegheny Technologies, parent company for Allvac, plans to spend about $30 million by the end of 2004 on new equipment at the Allvac plant.

AvestaPolarit will spend $22 million, about two-thirds of which will be spent on equipment at Allvac for processing the AvestaPolarit product.

The 70 new jobs will pay well more than $15 an hour, according to Robert Thompson of RLT Consulting, who represents the companies.

The announcement comes on the heels of a $27 million expansion announced last fall by Allvac that created 60 high-wage jobs.

All together, the announcements represent a $79 million investment and 130 jobs, good news for a county that had the sixth highest unemployment rate - 11.9 percent - in the state in January.

"This is a good example of what we are striving toward, and that is to bring in or expand industries with the high-tech, good-paying jobs for our citizens," Weir said. "To me, that's important right now."

The companies have been working on the joint project since before last March, when it was discussed by Chester County officials as Project Phoenix.

However, the terrorist attacks of Sept. 11 slowed the effort down, said Thompson, who along with Carl Gullick of CLG Consulting was hired by the companies to help secure state and county incentives.

No tax break agreement has been voted on by the county, although inducement resolutions that enable officials to begin negotiations were passed last summer, Thompson said.

Allegheny Technologies also announced its plans to spend an additional $20 million on capital expenditures elsewhere this year. The Pennsylvania-based company makes specialty materials around the world. It had revenues of about $2.1 billion last year and employs about 10,700.

AvestaPolarit was created last year by the merger of Outokumpu Steel and Avesta Sheffield. It is the world's second-largest stainless steel producer. The company, which supplies high quality stainless steel round bar in various sizes as well as stainless hexagonal and square bar, billet, wire rod and rebar, employs 8,900 people in more than 20 countries.

"I'm pleased that Allvac and Allegheny have confidence in Chester County," Weir said. "When you can start adding these type jobs, you begin to build your county."

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