E-Malt.com News article: USA: Iron City Brewing to get $937,000 from state for upgrading production facilities

Iron City Brewing Co. is getting $937,000 in previously pledged public funds to help upgrade production facilities at its Lawrenceville brewery, Pittsburgh Tribune-Review published February 20.

The company, renamed after new investors bought Pittsburgh Brewing Co. out of bankruptcy last year, received a renewed commitment of the state's portion of the aid Wednesday, $750,000 in incentives announced by Gov. Ed Rendell.

"Iron City and I.C. Light are almost as important a Pittsburgh tradition as the Pittsburgh Pirates and Pittsburgh Steelers," said Rendell at an afternoon news conference at the State Office Building.

Iron City Brewing was one of four Allegheny County companies to receive commitments of state subsidies totaling $5.48 million from Rendell yesterday. The others were American Textile Co., Wheelabrator Air Pollution Control Inc, and Powercast Inc. Collectively, the four would create 768 new jobs and retain 472 others.

The state funding for Iron City Brewing includes a $500,000 loan for machinery and equipment, a $200,000 opportunity grant and $50,000 in job training funds.

It will be combined with a $150,000 low-interest loan from Allegheny County and $37,500 in grant money from the city's Urban Redevelopment Authority -- $12,500 in each of the next three years.

"This money is going to be reinvested back into the brewery to retain our jobs," said Tim Hickman, president of Iron City Brewing. The company has pledged to keep jobs for 100 union and management employees, he said.

The money will be used for previously announced plans to upgrade the plant's boiler, keg and energy systems.

"We've already upgraded the old gas boiler in mid-October, and we've ordered the new keg systems. We got the quarter kegs, 1,400 of them last month, and the remainder of the kegs will start to arrive in March, April, May and June. Overall, there will be 10,000 new kegs."

Projected cost of the new keg system is $2 million, while the boiler overhaul cost about $500,000, Hickman said. "Everything should be operational by mid-summer."

"We will have a new modern keg and filling system, so we will be able to compete in the draft market here in Pittsburgh and Western Pennsylvania, and our boiler will be more efficient and help us reduce our energy costs."


22 February, 2008