Thursday, June 16, 2011

Delaware woos firm, 1,500 jobs

The state has convinced an innovative California manufacturer of electricity-producing fuel cells to build its East Coast manufacturing facility on the site of the old Chrysler plant in Newark, bringing as many as 1,500 much-needed jobs to Delaware and boosting the University of Delaware's vision for a thriving high-tech center.

Bloom Energy of Sunnyvale, Calif., turned down more generous offers from several other states in deciding to base its first East Coast expansion in Delaware, according to Josh Richman, vice president of business development at Bloom, considered a prominent player in the emerging field of fuel cells.

Over the next five years, Bloom expects to hire about 900 for a manufacturing facility on the southwestern portion of the Chrysler site, and predicts a minimum of 600 more jobs will follow as its suppliers open Delaware bases of operations. State officials anticipate six of those suppliers will set up shop on the Chrysler property, which qualifies as a "brownfield" given its 60-year history of automaking.

Bloom expects to break ground on its 200,000-square-foot facility this fall, and the factory should be up and running in mid-2012. Construction is estimated to create 350 jobs this year and the 900-worker goal should be attainable in just two years, said Alan Levin, Delaware's economic development director.

The company will receive millions of dollars in incentives from the state but must reach employment milestones within the next five years. Key aspects of the deal are contingent on regulatory, municipal and legislative approvals, which are expected to be addressed soon.

A total price tag on the investment by Bloom was not disclosed by the company or state officials.

"This is something that we have been working on for a very long time -- 14 months," Gov. Jack Markell said in disclosing the deal, which was forged with the help of some established relationships -- DNREC Secretary Collin O'Mara already knew Richman, for example.

Working behind the scenes, Markell and his advisers, with some help from U.S. Sen. Tom Carper, convinced Bloom that Delaware had the right location, workforce and accommodating atmosphere for the company to begin its push for East Coast business.

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