RDP Partners with ERMCO to Improve America's Infrastructure

News provided by

Oct 17, 2024, 16:46 ET

FOREST CITY, Iowa, Oct. 17, 2024 /PRNewswire/ -- Rural Development Partners (RDP) is pleased to award $15 million in New Markets Tax Credit (NMTC) financing to Electric Research Manufacturing Cooperative, Inc. (ERMCO) for the expansion and equipping of their Dyersburg, Tennessee facilities. This allocation is part of a $54.1 million NMTC package from RDP, MuniStrategies/$13MM, Cadence/$10MM, Pathway/$9MM, and GrowAmerica/$7.1MM. The strategic investment is expected to create an estimated 400 jobs at ERMCO, increase production capacity, and establish a comprehensive workforce development center to provide training for employees. The expansion is aligned with the increasing demand for critical infrastructure components essential to the transition to cleaner energy sources and the enhancement of grid resilience.

"RDP is very excited to partner with ERMCO to bring quality jobs and investment into Dyersburg and the surrounding area. ERMCO has been a mainstay in Dyer County for over 50 years serving as the County's largest employer. In a time where our Country has seen such large devastation due to natural disasters, we find it vital to support companies such as ERMCO that play a critical role in keeping our infrastructure up and running." - Dan Helgeson, CEO of Rural Development Partners

With a U.S. government focus on critical infrastructure improvements, specifically electrical grid upgrades that deliver clean energy, combined with a steady increase in natural disasters, there has been rapid growth and increased demand for their products. To meet these challenges, ERMCO will expedite a three-phase transformer plant expansion and equipment upgrade at its Dyersburg facilities. NMTC financing will add the essential machinery and equipment needed to provide operational efficiencies and quick response to major power outages which help prevent job loss and the disruption of community services.

Adam Kruzich, ERMCO Chief Financial Officer states, "The New Markets Tax Credit funding is much appreciated by ERMCO and the Dyersburg community. This investment will enable ERMCO to expand our manufacturing capacity, create new jobs and support the nation's critical infrastructure needs. By increasing our production of distribution transformers, we're helping to ensure a reliable and resilient electrical grid. We're proud to contribute to the economic growth of Dyersburg and play a vital role in building a sustainable energy future for the United States."

ERMCO
ERMCO, a wholly owned subsidiary of Arkansas Electric Cooperatives, Inc (AECI), is the largest manufacturer of oil-filled distribution transformers in North America. Their leadership in the electric distribution industry has led to the delivery of cleaner, more affordable renewable energy for residents nationwide. ERMCO transformers and components play a critical role in enhancing grid resilience, ensuring reliable power delivery, and supporting federal, state, and local government response to natural disasters.

Rural Development Partners
Rural Development Partners is a Community Development Entity with a national service area eligible to apply for an annual allocation of Federal New Markets Tax Credits. From 2004 through 2024, RDP has won thirteen NMTC awards from the US Treasury totaling $816.7 million. Funding has helped over 50 businesses and nonprofits expand to provide quality jobs, economic impacts, and healthy food access in underserved communities. RDP seeks to serve and partner with businesses, non-profits, communities, and government entities that share its mission to build public-private partnerships for catalytic job growth in rural America. Learn more about RDP and the NMTC program by visiting our website or social media platforms at FaceBook, LinkedIn, and YouTube.

Media Contact: [email protected]

SOURCE Rural Development Partners