February OFB



February OFB

FOR IMMEDIATE RELEASE
February 5, 2007

CONTACT:
Lara Ramsburg, (304) 558-2000
Catherine Zacchi, (304) 558-2003

Governor Releases February "Open for Business" Report

CHARLESTON, W.Va. - Gov. Joe Manchin today released the latest "Open for Business" report documenting the state’s economic progress. The February 2007 report highlights projects and related announcements that will assist with the creation of new jobs and the preservation of a significant number of existing jobs.

Business Climate Update

Governor highlights significant business-friendly accomplishments of the last two years
During his third State-of-the-State Address, Gov. Joe Manchin highlighted results of a tremendous two-year growth period for West Virginia, including sweeping reforms that addressed issues that hampered the state’s economy. He said a diverse coalition of West Virginia business, labor and government leaders have made the tough, responsible decisions to manage long-term debt and create a climate that attracts businesses.

Accomplishments include the first overall reduction in the growth of state government employment in more than a decade and putting close to $1 billion toward debt reduction. Recent tax modernization efforts will cut the food tax in half by 2008; create a low-income family tax credit; double the Senior Citizen refundable property tax credit; cut the business franchise tax and reduce corporate net income tax. These tax modernization efforts will continue during the 2007 Legislative Session, the governor said.

Manchin said his administration will continue to implement recommendations of the cost savings reports from the nationally recognized consulting firm Public Works. The reports identify where millions of state government dollars can be saved during the next five years.

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Northrup Grumman to add more jobs in Fairmont
Northrup Grumman Corp. said a majority of 50 new jobs it is adding to support a $75 million U.S. Army contract it recently received will be in West Virginia. Under the contract, the company will provide a biometrics system that will integrate the Department of Defense’s worldwide biometrics efforts.

The system will be the Defense Department’s biometric repository for all identification types, linking to the intelligence community and civilian agencies, all in a focused effort to address the war on terrorism, said Jill Kale, vice president of Enterprise Applications and Systems Integration for Northrop Grumman IT's Defense group. Northrop Grumman is a $30 billion company that employs 120,000 worldwide.

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Dow Chemical to expand its Institute, W.Va., plant
Dow Chemical Co. in January announced plans to expand its Institute plant to increase production of Cellosize products and reduce energy costs. The $20 million expansion, which will include new equipment and construction at the plant, is expected to be completed in June 2009.

Cellosize production at the Institute plant will focus primarily on paint and oilfield applications. U.S. Sen. Jay Rockefeller said Dow's announcement "is a clear sign that they expect a long-term relationship with West Virginia."

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West Virginia’s low energy costs give Mountain State industries an advantage
In January, David Warner, executive director of the West Virginia Development Authority, presented a report from an Atlanta-based location-consulting that showed the average cost of electricity for industrial customers in West Virginia in 2005 was 49 percent less per kilowatt-hour than the national average. The national average for industrial customers was 5.73 cents per kilowatt-hour, while West Virginia’s rate was 3.85 cents. It’s among the lowest rates in the country and the lowest of all surrounding states except Kentucky.

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Eastern Panhandle company helping to locate dangerous landmines in war-torn countries
Schonstedt Instrument Co. of Kearneysville, W.Va., in partnership with the United Nations Mine Action Team, is donating hundreds of magnetic locators to humanitarian mine clearance personnel to help them locate landmines, grenades, bombs and other explosive remnants in war-ravaged countries. The Schonstedt Humanitarian Demining Initiative will donate a magnetic locator to the U.N. Mine Action Service for new Schonstedt TraceMaster or XTpc underground pipe and cable locators the company sells.

Schonstedt is the world’s leading maker of the handheld magnetic locators, known technically as gradiometers or magnetometers, which are used to detect unexploded ordnance.

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Small Business Development Center celebrates 25 years of helping state’s entrepreneurs
The West Virginia Small Business Development Center network this year commemorates 25 years of helping entrepreneurs build better businesses. The WVSBDC belongs to a national network of centers that began in 1976. West Virginia became part of the network in 1982 with three centers, contributing to the nationwide total of 100.

Today the WVSBDC is a division of the West Virginia Development Office and works with colleges, universities and other organizations to provide free business consulting and technical assistance at 14 locations serving all 55 counties. The center helps entrepreneurs with business plans and startup, loans, training, regulatory review, workforce programs and research and technology.

The U.S. Small Business Administration, the State of West Virginia, the U.S. Department of Agriculture, the Appalachian Regional Commission, along with colleges and universities and workforce development units that serve as its host institutions, support the WVSBDC.

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Charleston firm joins largest accounting company in the Southeast
Charleston-based accounting firm Simpson & Osborne will join with North Carolina-based Dixon Hughes, the largest accounting company in the Southeast. The merger could create up to 100 more jobs in the next three years, said S&O Chairman Bob Simpson, one of the founders of the 32-year-old company. Dixon Hughes plans to target businesses niches in West Virginia that it specializes in elsewhere, co-CEO Eddie Sams said. Those targets include auto and equipment dealerships, community banks and health care.

S&O has about 70 employees in West Virginia, while Dixon Hughes has more than 1,000 employees in seven states. The merger becomes effective on Feb. 1.

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Regional wireless phone company continues West Virginia upgrades
Ntelos Wireless has added two new cell sites in the Charleston area, which will provide in-building wireless services for downtown businesses and better coverage for the southern portion of the city. It is part of the Waynseboro, Va., company’s recent expansion of its digital network throughout West Virginia.

Since 2005, the company has spent more than $100 million in network expansion and upgrades in Virginia and West Virginia. Last fall, the company completed upgrades along Interstate 79, providing continuous service from Charleston to the Pennsylvania border, according to Public Relations Director Mike Minnis. Several other areas in West Virginia are targeted for network expansions or upgrades this year, including extending coverage along U.S. Route 33 from Buckhannon to Elkins, he said.

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Chinese executives take part in exchange program at WVU
In December, Chinese business and government leaders from Xien and Shanghai met with Gov. Manchin in Charleston and toured the Clay Center for the Arts and Sciences and the State Capitol. The group was participating in a municipal governor executive exchange program at West Virginia University.

For the past decade, the WVU’s Center for Chinese Business has been instrumental in educating government and business leaders from China's three largest cities: Shanghai, Beijing, and Tianjin. High-level business and government officials study at West Virginia University for six months, exploring international business, strategic planning, regional international business, strategic planning, regional economic development, international financial market, American culture, and English. They also meet key leaders in American companies through corporate seminars and visits.

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West Virginia Small Business Development Center helps 328 clients in January
The West Virginia Small Business Development Center (SDBC) provided 606 hours of counseling and training to 328 clients last month. The SDBC has provided 2,552 hours of counseling and training to 1,197 clients this fiscal year beginning October 1, 2006, helping to create or retain 134 jobs. SDBC staff trained 167 people at 21 events in January and trained 675 people this fiscal year. Two loans totaling $498 were approved in January. Sixteen loans totaling nearly $2.5 million have been approved fiscal year-to-date. New customer satisfaction was 100 percent in January and for the year .

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Economic Development Authority approves $945,000 for Rubberlite
Cabell County’s Rubberlite Inc received preliminary approval on a $945,000 loan to purchase and install equipment in its manufacturing facility in Huntington. Rubberlite manufactures various closed cell sponge rubber and plastic products. This expansion is expected to create up to 11 jobs in three years.

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