Sunday, October 03, 2004

Parkwest center to host Bayer spinoff = corporate welfare

Parkwest center to host Bayer spinoff - "Dennis Yablonsky, secretary of Pennsylvania's Department of Community and Economic Development, and Dan Onorato, Allegheny County chief executive, are expected to announce a package of public financing to solidify Lanxess' employment base in the region.

Big win for the region, if you love corporate welfare

Community and Economic Development Secretary Dennis Yablonsky and PRA
Board Member and Allegheny County Chief Executive Dan Onorato announced last week two separate projects that will enable Bayer Corp. to retain 1,750 employees statewide and LANXESS Corp. to create up to 435 jobs within three years. LANXESS is a new company formed when Bayer Group combined and spun off its chemical businesses and large segments of its polymer activities. LANXESS leadership also plans to relocate a portion of its staff in Akron, Ohio, to Pittsburgh.

Germany-based Bayer has operations in four commonwealth counties, including Allegheny, Washington, and Westmoreland. (The fourth is Lebanon County.) It plans to invest $100 million in its Pennsylvania facilities and keep its U.S. corporate headquarters in Allegheny County. Recognizing the importance Bayer plays in the region, DCED offered the company a $1.7 million financial package that includes a $1 million Opportunity Grant and $700,000 in job training assistance. Allegheny County has offered up to $200,000 in the form of a Community Development Block Grant.

The commonwealth also offered a $1.86 million financial package to LANXESS that includes an $872,000 Opportunity Grant, $554,000 in job training assistance, and $435, 000 in job creation tax credits. LANXESS, meanwhile, has pledged to invest approximately $10 million in Pennsylvania over the next three years.

Lanxess was courted by officials from both Ohio and South Carolina, therefore, the Pittsburgh Regional Alliance is pleased to have served the region in assisting with the LANXESS location as well as the Bayer decision. These developments show a new momentum gathering in southwestern Pennsylvania. We wish the leadership in both companies the best of success in their endeavors.

How can a start-up move jobs from Akron?

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