FOR RELEASE ON:
August 12, 1997
Contact: Martha Pattelli
Governor Jim Edgar announced approval of $6,000,000 of Tax-Exempt Volume Cap to the Upper Illinois River Valley Development Authority (UIRVDA) on behalf of GE Plastics in Ottawa, Illinois. The Volume Cap authorizes the issuance of tax-exempt bonds for GE Plastics. Interest on the bonds is exempt from federal income tax to the bondholders. Because of this exemption, tax-exempt bonds offer a lower interest rate to the borrower. “I am happy that the State can assist in the GE Plastics Expansion, consistent with our long-standing policy to promote local economic development”, said Edgar. GE Plastics is undertaking an expansion of their Cycolac ABS Plastic manufacturing facility in Ottawa. The company plans to increase their manufacturing capacity level by 25%. It plans on replacing some of the present production lines with new, high efficiency, high production Mega-Extruders. The plastic production process extrudes melted plastic through dies and a 30 foot water cooling bath. The extruded plastic is then cut into pellets before packaging and shipment to customers around the world. This investment will increase the number of jobs from the present 428 and represents a long-term commitment to the site and the surrounding communities.
The Ottawa Site, purchased from Borg-Warner Chemical in 1989, will celebrate its 30th anniversary in September. It is the largest manufacturing employer in LaSalle County and indirectly provides employment for many people in North-Central Illinois. Site Manager Scott Stanley says, “We are proud to be implementing this expansion in Ottawa. This investment in the plant and community reflects 30 years of hard work and productivity at the site. Coupled with our current record of over four years without a lost time accident and our ISO 9002 Quality certification. This technology helps us meet our goals in the areas of safety, quality and growth. GE appreciates the efforts of UIRVDA in administering this program.”
The interest paid to the purchasers of these bonds is exempt from Federal Income Tax. “This is important because it does not effect the tax base of the local communities,” according to James Carter, CPA, Ottawa’s Site Finance Manager. “This program provides low-cost capital for program-specific projects since tax-exempt bonds have a lower interest rate than bonds with taxable interest.”
GE Plastics is a wholly owned subsidiary of General Electric Company (GE). GE originally begun by Thomas Edison as the Edison Electric Light Company in 1878. It merged with Thompson Houston Electric Company and changed it name to its present form in 1892. It is one of the original Dow Jones Industrial Average companies and remains on this highly visible market index today. GE operates in more than 100 countries around the world including 250 manufacturing plants in 26 different nations. GE employs 239,000 people world wide including 155,000 in the US.
UIRVDA, created by action of the Illinois General Assembly and the Governor, is a general development agency for the counties of Bureau, Grundy, Kendall, LaSalle, Marshall and Putnam and is one of only three active economic development regional authorities within the State of Illinois. The Authority’s financial and supportive powers enable it, with the written approval of the Governor of the State of Illinois, to issue taxable or tax-exempt State of Illinois revenue bonds for the purpose of developing properties or facilities for business entities locating in or expanding within the territorial jurisdiction of the Authority.
Members of the Authority board include: Bill Cote, Lynn Fieldman, Barbara Griffith, Dennis Hackett, Philip McCully, Chester Massino, Donna Matteson, William D. Meagher, Eugene Mercier, Martha Pattelli, William Steep, David Thompson, James Washburn and the Directors of the Illinois Department of Commerce and Community Affairs and the Illinois Department of Central Management Services. For more information call Andrew Hamilton, Executive Director at 217/546-7525.