HONEY BROOK, PA — In a significant boost to Chester County’s manufacturing sector, Metalum LLC, a local metal fabricator, has secured a 10-year, $2 million loan for a major expansion project. The loan, approved through the Chester County Economic Development Council, will aid in the construction of a new 51,834-square-foot manufacturing warehouse and an attached 5,234-square-foot office area in Honey Brook Township.
The loan, carrying a reset interest rate of 4%, will supplement the existing 14,000-square-foot manufacturing and warehouse area, as well as the office space. This expansion will position Metalum to take on larger, heavier fabrication jobs that yield higher profit margins, allowing it to compete more effectively with larger fabricators. The total cost of this project is estimated at $8 million.
State Rep. Dan Williams, who announced the loan approval, emphasized the broader economic benefits of this expansion. “This is another example of how economic redevelopment in Chester County benefits not only the company and its employees, but the entire surrounding area,” said Williams. “As the company will be purchasing more goods and services, hopefully making a larger profit, which creates a larger tax base for the area. And, of course, this creates jobs and the recipients of those jobs will have more money to purchase goods and services.”
The project is projected to create five new jobs and retain 35 existing ones within the next three years. This job growth will contribute to the local economy, providing more residents with income to support local businesses.
The Pennsylvania Industrial Development Authority (PIDA) will administer the loan. PIDA is a state-run initiative that offers low-interest loans and lines of credit to eligible businesses committed to creating and retaining full-time jobs. It also funds the development of industrial parks and multi-tenant facilities. PIDA loans can be used for various business needs, including land and building acquisitions, construction and renovation costs, machinery and equipment purchases, and working capital.
This loan approval highlights the importance of economic development initiatives like PIDA in supporting local businesses and fostering job growth. It also highlights how strategic business expansion can have a ripple effect on the broader community, creating jobs, increasing the tax base, and stimulating local spending.
As Metalum prepares for its expansion, the residents of Honey Brook Township and wider Chester County can look forward to the positive economic impact this project is set to deliver. With an estimated increase in employment opportunities and potential for increased revenue, this expansion will not only benefit Metalum but also contribute to the overall economic prosperity of the region.
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