The Governor Also Announces Enterprise Zone Expansion to Help Fabritech Create and Retain 72 Jobs at the St. Louis Regional Airport in Bethalto

CHICAGO – Gov. Rod R. Blagojevich today announced a more than $560,000 investment package for Fabritech Inc., an aerospace manufacturing and maintenance, repair and overhaul business that specializes in rotor-wing aircraft, to help expand its existing operations at the St. Louis Regional Airport in Bethalto.  The company, which is making an almost $1.7 million investment, will create 26 new full-time jobs within two years and retain 46 jobs.  The Governor also announced the certification of a boundary expansion for the Riverbend Enterprise Zone to include this business expansion, which will lend critical income and job creation tax credits.  This support comes as a part of Opportunity Returns, the Governor’s comprehensive economic development strategy to continue creating more jobs and keep expanding the economy in Southwest Illinois.  

“Fabritech is a perfect example of a growing manufacturer, which needed new resources to accommodate its expanding operation.  We are happy to be working together with this company as it capitalizes on all of our strategic advantages, which leads to more investment and new Illinois jobs.  By creating a business climate that encourages innovation, we are helping many companies like Fabritech become more competitive, while putting more and more people to work,” Gov. Blagojevich said.

Fabritech, Inc. was incorporated in 1992 and currently operates a 25,000 square foot facility at the St. Louis Regional Airport.  Fabritech’s aircraft experience is extensive, with its personnel experience totaling more than 330 years.  Major customers include the U.S. Army Aviation & Missile Command, the Defense Logistics Agency and Science and Engineering Services, Inc.  To accommodate its growing manufacturing business, Fabritech will double the size of its existing facility to provide additional industrial and corporate office space.  The company is investing almost $1.7 million towards the expansion, which includes refurbishing and remodeling the existing facility.  The expansion is expected to be complete by the end of 2008.
 
“We are strategically located in the St. Louis Regional Airport and look forward to growing our workforce and expanding our base here in Illinois,” said President Steven A. McCunney.  “We are grateful to the state of Illinois and Gov. Blagojevich for providing us with the tools and support behind this expansion.” 

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; Employer Training Investment Program (ETIP) job training funds that will help enhance the skills of its workforce; and additional financial benefits, such as sales tax exemptions and tax credits for job creation, resulting from the company’s location within the expanded Enterprise Zone.

The Riverbend Enterprise Zone will extend its benefits to include a total of four acres, which will incorporate the Fabritech facility and its planned expansion.  Chief benefits of an enterprise zone include sales tax exemptions and tax credits for job creation.  A 6.25 percent state sales tax exemption is permitted on building materials to be used in an enterprise zone, while the Enterprise Zone Jobs Tax Credit allows a business a $500 credit on Illinois income taxes for each job created in the zone for which a certified eligible worker is hired.  The Enterprise Zone Investment Tax Credit is a state investment tax credit of .5 percent for investments in qualified property in a zone, which includes machinery, equipment and buildings.  An additional local benefit of the enterprise zone is the property tax abatements from the taxing districts.

A local enterprise zone may apply to the Illinois Department of Commerce and Economic Opportunity (DCEO) for boundary expansion if the proposed area to be added meets at least one of the tests for poverty, low income, unemployment or population loss, or the proposed area will provide an immediate substantial benefit to the zone.  There are 96 enterprise zones statewide.

“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.  My thanks to Gov. Blagojevich for his support for Fabritech, an innovative manufacturer that I know will continue to expand,” State Senator William Haine (D-Alton) said.

“Gov. Blagojevich and I are committed to retaining and creating good jobs for the people across Southwest Illinois.  We’re excited Fabritech is expanding its presence in Bethalto and using the key advantages available through the expanded enterprise zone that will lead to more good jobs in the region,” State Rep. Daniel Beiser (D-Alton) said.

“Gov. Blagojevich’s regional economic development strategy is all about providing the resources needed to help companies grow and create more jobs.  By partnering with companies like Fabritech and expanding the Riverbend Enterprise Zone, we’re helping to increase their competitiveness and keeping our economy moving forward,” DCEO Director Jack Lavin said.

Since January 2004, Illinois has gained almost 188,000 jobs, which is best in the Midwest.  Illinois led the nation in new job growth in January 2007 with 19,100 new jobs and was second in the nation with 12,200 new jobs in May 2007.  In 2006, Illinois gained 71,000 new jobs, which is the best calendar year gain since 2000.  Over the last four 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.