Flexicon Expansion Project Assisted by LVEDC Financing Programs
By Colin McEvoy on June 8, 2015
The industrial manufacturer Flexicon Corp. has officially closed on the loan that allowed them to undertake a major expansion project, nearly doubling the size of its Bethlehem Township-based U.S. headquarters.
Flexicon added 91,000-square-feet to its manufacturing and warehousing facility with the assistance of a $2 million Pennsylvania Industrial Development Authority (PIDA) loan and $4.5 million in tax-exempt financing, two financing programs available through the Lehigh Valley Economic Development Corp. (LVEDC) and its partners.
The programs helped to significantly lower the cost of capital for the $6.5 million expansion project, which allowed the company to add about 50 new jobs and retain 138 positions.
“LVEDC and their partners, the Northampton County Industrial Development Authority and Northampton County New Jobs Corp., provided access to incentive loan programs that made the cost of this project significantly more affordable,” said Flexicon President David Gill. “These organizations really care about the companies in this region and have been a wonderful source of support for us at Flexicon. We really appreciate their work on our behalf.”
Flexicon is a world leader in the design and manufacture of bulk material handling and processing equipment and systems. The expansion will reduce wait times for equipment deliveries, allow for the development of new product lines, increase the company’s assembly department eight-fold, and double the size of its steel forming, welding, grinding, polishing and blasting departments.
Located in the Lehigh Valley since 2001, Flexicon produces flexible pneumatic and tubular conveyors, bulk bag discharge and filling frames, and related bulk material handling equipment for chemical, mineral, food, dairy, plastics and pharmaceutical industries. In addition to the United States, the company has operations in the UK, Australia, South Africa, Chile and Singapore.
LVEDC and our partners provide low cost financing for businesses in the Lehigh Valley. PIDA, one of several financing programs LVEDC administers, offers low-interest loans through Certified Economic Development Organizations to businesses for variety of uses including land and building acquisition, construction and renovation that results in the creation or preservation of jobs.
“The PIDA program is a powerful tool, and it’s just one of the many economic development incentives we have to offer,” said John Kingsley, LVEDC vice president of finance. “Our finance department administers more than a dozen local, state and federal programs to help companies grow and succeed here in the Lehigh Valley.”
The PIDA program, considered by the majority of lenders to be Pennsylvania’s flagship economic development lending program, can finance up to $2.25 million with a term of up to 15 years. LVEDC has helped secure $10.7 million in PIDA loans for seven companies in 2014 alone, resulting in the retention of about 780 jobs and the creation of about 200 new jobs.
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