Mar 6 2010
SAGE Electrochromics Inc. announced today that it will build a $110 million manufacturing facility adjacent to its headquarters in Faribault, Minn. The move will add 160 permanent, skilled, green manufacturing and technology jobs, and over 200 construction jobs to southern Minnesota. SAGE produces energy-saving electronically tintable glass used in building windows and skylights.
SAGE officials chose Faribault for their new 250,000-square-foot high-volume plant after a national site search.
"We are proud to join with SAGE and our many partners in announcing the company’s decision to expand and bring new jobs to Faribault," said Dan McElroy, commissioner of the Minnesota Department of Employment and Economic Development (DEED). "This project helps Minnesota build on its reputation as the Silicon Valley of the window industry and as a leader in the green economy."
Along with SAGE, Minnesota is home to a concentration of companies in the glass fabrication and window manufacturing industry, including Viracon Inc. in Owatonna, Marvin Windows and Doors in Warroad, Cardinal Glass in Eden Prairie and Andersen Corp. in Bayport.
This expansion news follows an announcement that SAGE has secured more than $100 million in funding, including a conditional commitment for a $72 million loan guarantee by the U.S. Department of Energy (DOE) and $31 million in Advanced Energy Manufacturing Tax Credits to help green the world’s buildings.
SAGE was founded by CEO John Van Dine in 1989 in Valley Cottage, N.Y. In 1998, he moved the company to Minnesota, where the firm established itself as a leader in the production of electronically tintable glass used in exterior windows and skylights. The company benefitted from development contracts and grants from various federal agencies and obtained institutional financing that has allowed it to grow and strengthen its leadership position.
According to Van Dine, the company has developed the only commercially available, electronically tintable glass for use in buildings. It uses nanotechnology to create eco-friendly, dynamic windows that change tint to regulate sunlight, heat and glare. SAGE products are controlled electronically; they can be switched from clear to highly tinted at the click of a button, or programmed to respond automatically to changing sunlight conditions.
While most of the company’s sales are in North America, SAGE plans to expand into international markets, where demand for green buildings is growing.
"It makes good strategic sense for SAGE to expand in Minnesota. State and local officials understand the needs of our business and were very cooperative in helping us lay this foundation for our future," Van Dine said. "There is broad demand for green building technologies like the kind SAGE produces, and the company is well-positioned to satisfy that rapidly growing demand."
The 160 jobs created by SAGE’s new manufacturing facility will be in addition to the 100 permanent, full-time people who are already employed at the company’s Faribault headquarters. A study by Deloitte Consulting concluded that, in total, the new plant will add nearly 400 permanent jobs to the area’s economy. Groundbreaking is scheduled for summer of 2010, and the plant will be shipping its SageGlass product in the latter part of 2011.
"This expansion is very important to the city of Faribault and brings welcome economic growth to our community," said Faribault Mayor John Jasinski. "SAGE’s decision also shows that businesses place significant value on expanding locally."
DEED played a lead role in coordinating state and local partners that were involved in providing a package of incentives for locating the facility in Minnesota. Partners include Minnesota State Colleges and Universities, Rice County, the city of Faribault, Southern Minnesota Initiative Foundation, local utilities and others.
DEED incentives included JOBZ, a state program that provides tax benefits to businesses that expand or relocate in targeted sites in Greater Minnesota. The company also received state financing, including a $1 million forgivable loan from the Minnesota Investment Fund and a $350,000 job training grant from the Minnesota Job Skills Partnership.
Source: http://www.sage-ec.com/