Granite City Reaches $1 Billion Milestone in Total New Investment

The City of Granite City has reached a significant milestone for combined corporate/private business and public investment, with the total activity topping the $1 billion mark, helping to create and retain jobs in the area. In all, more than 600 jobs have been created as a direct result of this investment, and over 4,600 jobs have been retained.

“Businesses large and small have given their vote of confidence to Granite City to the extent that we can now celebrate a milestone of reaching over $1 billion in total new investment in our City during the past six years, over $900 million of which has been by private businesses,” said Mayor Ed Hagnauer.  “Despite ups and downs during the course of the recent economic downturn, Granite City has emerged standing strong and ready for the opportunities that lie ahead.”

The investments have come into Granite City from businesses of all shapes and sizes.  In fact, approximately 30 individual businesses have invested $1 million or more in expanding their enterprises in Granite City during the past six years.  A significant portion of the dollars invested came from the partnership between United States Steel and SunCoke Energy, which invested a combined $570 million to build a new Coke Energy Plant and Cogeneration facility in 2008/2009, making their local facilities some of the most technologically advanced of their kind in the world.  However, some of the city’s smaller manufacturers have also seen tremendous growth, including Illinois Electric Works and Arnette Pattern Co., which have invested approximately $3 million and $2.3 million, respectively.  Both of these companies have nearly doubled in size, adding a combined 50 employees to their payrolls.

Also contributing to the billion dollar total are projects totaling $90 million that are set to begin this year. The most recently announced of these is a $40 million investment that Kraft Foods will bring to the city.

 “We’re pleased to be making a significant equipment investment here and plan to add 30 jobs over the next two years,” said Kraft Granite City Plant Manager Scott Frick.  “We have an excellent, dedicated workforce locally, which is an important consideration when adding jobs.  We want to thank the local economic development team from the city, county and state, who worked proactively to support our project and make it happen.”

Other recent and ongoing projects include:

• $5 million invested by Baily International, the nation’s fourth largest producer of Asian & Chinese foods, which is projected to add an additional 100 jobs in 2014;
• $12.9 million being invested by Illinois-American Water Co.  in its Granite City Water Treatment Plant this year;
• the recently completed, 4^th phase of Prairie Farms Dairy’s $25 million expansion, which added 25 jobs to the area, and
• more than $8 million invested in the downtown area, where approximately 10 net new small businesses have opened their doors, contributing to the resurgence within the downtown core.

 A common theme for most of the local businesses that have invested here is the quality of the local workforce.  “We applaud and congratulate our local workers for their good work,” said Mayor Hagnauer. “For our part, the city shall continue to work in partnership with the state and the county to connect our businesses with the various worker training programs that are available so that their workers can get the training they need and so we can further improve our workforce capabilities.”

Jonathan Ferry, the city’s Economic Development Director, said that Granite City’s top economic priority is to support the organic growth of the local economy through the retention and expansion of our existing businesses, both big and small.  “We are committed to maintaining and improving upon our supportive environment for business, and in so doing, we will always remain ‘open for business.’”

More like this: