Siemens Westinghouse Chooses Pittsburgh Area for Expansion of its Fuel Cell Operation

Business Wire, Sept 26, 2001

Business Editors/Technology Writers

PITTSBURGH--(BUSINESS WIRE)--Sept. 26, 2001

The Greater Pittsburgh Area Offers Best Option for

430,000-Square-Foot High-Tech Manufacturing Facility

After a nine-month comprehensive search involving nine U.S. communities and 123 potential sites, Siemens Westinghouse Power Corporation announced today that it has selected the Pittsburgh area for the expansion of its Stationary Fuel Cell business. Siemens Westinghouse selected a 22-acre site for its 430,000-square-foot manufacturing facility in The Waterfront development located in the borough of Munhall within Allegheny County.

Among the communities the company considered were Orlando, Florida, and Dallas-Ft. Worth, Texas. "While all three communities presented very compelling proposals and would have been very good places in which to do business, after considering all the factors, we decided that the Pittsburgh area is best for the long-term future success of our business," said Thomas Voigt, president of Siemens Westinghouse's Stationary Fuel Cells Division. "There were many factors, people and organizations that helped us come to this conclusion. We'd like to express our appreciation and thanks to Allegheny County's Chief Executive Jim Roddey, Pittsburgh Mayor Tom Murphy and his staff, Allegheny County Economic Development Director Earl Hord, Congressman Mike Doyle ((D) -District 18, Pennsylvania), Governor Tom Ridge and Steve Morgan of his Governor's Action Team, Ronnie Bryant and Bernie McShea of the Pittsburgh Regional Alliance, and many others who worked very hard to demonstrate their desire for us to remain in this business community."

Siemens Westinghouse's new facility will be built in phases starting with 180,000 square feet of manufacturing and office space in 2003 and growing to 430,000 square feet by 2006. Initial employment at the facility will be approximately 150 people and will expand as the business grows to 450-500 people.

"Allegheny County competed with several strong contenders including Orlando, Florida, and Dallas-Ft. Worth, but in the end our highly educated workforce, strong work ethic and excellent, affordable quality of life were a perfect match for SWPC," said Allegheny County Chief Executive Jim Roddey. "Siemens Westinghouse's decision to expand its Stationary Fuel Cell business in Allegheny County allows our community the opportunity to be a leader in this exciting new technology and helps fortify our economic future."

Pittsburgh's Mayor Tom Murphy believes that the city and the region will greatly benefit by keeping Siemens Westinghouse in the area. "Pittsburgh is the right choice for Siemens Westinghouse, and I am delighted by its decision to locate its fuel cell operation in our region. This important project will not only create new jobs and add to our burgeoning high-tech economy, it will put Pittsburgh at the forefront of America's efforts to develop environmentally friendly energy alternatives."

According to Siemens Westinghouse's Voigt, personal contacts played a significant role in the site selection process. Voigt listed a tour of Pittsburgh led by Mayor Murphy, and meetings with the Mayor and County Executive Jim Roddey as highlights. He also thanked Bill Newlin, CEO of Buchanan Ingersoll, for all of his efforts.

Also lending their support were others in key positions and organizations who assisted with this project. According to Siemens Westinghouse officials, Congressman Mike Doyle called on Continental Development Corporation, the developer of The Waterfront location, to encourage them to "make this deal work."

"Helping the companies located within my district and in western Pennsylvania to grow and prosper is a high priority to me in achieving true economic growth and development in our region," stated Congressman Doyle. "This is tremendous news to Pittsburgh and western Pennsylvania. I commend Siemens Westinghouse for this decision as our region is again being recognized for the role we are playing in the development and manufacturing of leading-edge technology."

Governor Tom Ridge and members of his Governor's Action Team worked to put together state incentives totaling $8.2 million in the form of tax credits and grants. In addition, nearly $4 million will be made available to Siemens Westinghouse for low-interest loans granted by both Allegheny County and the state of Pennsylvania.

With nine projects committed in the U.S., Canada, and at several locations in Europe, Siemens Westinghouse's Stationary Fuel Cells Division is currently in the technology demonstration phase of developing a revolutionary solution for the distributed generation market. After approximately 20 years of researching and developing fuel cell technology, implementing demonstration projects and fostering customer acceptance, Siemens Westinghouse now plans to deploy its fuel cell product line in the commercial market by the fall of 2003. Currently, the company is operating out of an R&D pilot plant facility in Churchill, Pennsylvania, which is located 3.5 miles northwest of the new site.