Gov. Rendell Says Cleaning and Maintenance Solutions Producer Zep Inc. Will Locate, Create 100 Jobs in Lehigh Valley

HARRISBURG, Pa., March 31 A leading provider of specialty chemicals and maintenance solutions will establish new operations in the Lehigh Valley and create 100 jobs as part of a multi-million project that was made possible, in part, because of state investments, Governor Edward G. Rendell announced today.

Zep Inc., a 74-year-old company based in Atlanta, will consolidate six warehouse operations into a single 100,000-square-foot operating center in Breinigsville, Lehigh County. The facility currently houses offices and a distribution center, and Zep intends to add production capabilities at the site in the future.  

"This was a competitive project, and Zep's decision to expand its operations and create 100 family-sustaining jobs in the Lehigh Valley within three years speaks well of the quality of the local workforce and to our economic development efforts," said Governor Rendell. "As we work to recover from this recession, we must continue to invest in quality projects like this one to create jobs in Pennsylvania and leverage private-sector investment."

The Governor said that the commonwealth's investment of approximately $2.7 million, which consists of a $2 million low-interest loan, as well as grants and tax credits, will leverage nearly three-and-a-half times that amount in outside funding under the $9.2 million project.

Governor Rendell added that he intends to continue to invest in the proven job creating economic development strategies that have helped keep Pennsylvania's unemployment rate lower than the national average for 83 of the past 86 months.  His proposed budget increases funding for effective programs such as opportunity grants, customized job training, infrastructure development, and infrastructure facilities and improvement grants.

Zep Inc. is a leading provider of specialty chemical products to a variety of industrial, institutional and retail customers. It produces more than 3,700 sanitation and maintenance products for professional use, such as detergents, disinfectants, hand cleaners, degreasers, deodorants, lubricants, floor finishes, and pest control solutions.

"Thanks to the leadership of Joe O'Brien, president of Zep East, and the assistance of local and state authorities, Zep is building an exciting business in the Lehigh Valley," said John K. Morgan, chairman, president and CEO of Zep Inc. "I am impressed with the team and facility Joe has been able to build and I'm certain that our customers in the East are the real winners. The Lehigh Valley will prove to be the ideal location for our business."

The project was coordinated by the Governor's Action Team, economic development professionals who work directly with businesses that are considering locating or expanding in the state.

The Lehigh Valley Economic Development Corp. worked with the company and the Governor's Action Team to secure the $2,745,000 funding offer from the Department of Community and Economic Development for the project. The offer includes a $2 million loan from the Machinery and Equipment Loan Fund, a $400,000 opportunity grant, $300,000 in job creation tax credits, and $45,000 in job training assistance.  

"In our continuing efforts to attract industries that enhance the vitality of the Lehigh Valley economy, we are pleased to welcome a quality organization such as Zep Inc.," said Phil Mitman, president and CEO of the Lehigh Valley Economic Development Corp. "The legendary Zep logo is recognized among its peers as being the standard for excellence and it represents the type of company we strive to have here."

Since Governor Rendell took office in 2003, GAT has successfully completed 1,220 projects, resulting in commitments to create 129,854 new jobs and retain 305,207 existing positions. The commonwealth has offered more than $2.3 billion in assistance for these projects, which will leverage more than $16.8 billion in additional investment.

For more information on Zep, visit www.zepinc.com.

For more information on the Governor's Action Team and other Department of Community and Economic Development programs, visit www.NewPA.com or call 1-866-466-3972.

Media contacts:

Luke Webber, DCED; 717-783-1132

Michael Smith, Governor's Office; 717-783-1116

SOURCE Pennsylvania Office of the Governor