Governor Announces State Help in First Quality Tissue Expansion

Governor Wolf 1-6-17
Gov. Tom Wolf

HARRISBURG — The state through Gov. Tom Wolf today announced the Commonwealth role in the most recent expansion at First Quality Tissue in Lock Haven.

While the addition of a third paper machine and 184 new jobs was officially announced in November and has been in the works for two years, today’s announcement from Harrisburg detailed state participation in the mammoth project. State involvement, according to the announcement, will include “a $1 million Pennsylvania First program grant and $250,000 in WEDnetPA funding for employee training.” The release said First Quality “has also been encouraged to apply for a $2 million low-interest loan” through the Pennsylvania Industrial Development Authority.

Preliminary work on the expansion continues, the next step expected to be the hauling of fill to the Castanea location to further elevate the proposed building site above the flood plain.

The formal announcement from the governor’s office:
Harrisburg, PA – Governor Wolf announced today that First Quality Tissue, LLC a manufacturer of ultra-premium towel and tissue products, will expand its operations in Lock Haven, a move that will create 184 new jobs.

“This was a highly competitive project, as First Quality has other operations outside of the Commonwealth. Even so, Pennsylvania’s dedicated workforce and prime location continue to be highly valued assets to both new and existing companies and helped lock in First Quality’s decision to expand here,” said Governor Wolf. “As Clinton County’s largest employer, I am pleased that it is furthering its presence in Pennsylvania. The creation of 184 new, full-time jobs will have a significant impact on the county and beyond.”

First Quality Enterprises will expand operations at First Quality Tissue by constructing a new plant near its existing facility at 904 Woods Avenue, and purchase machinery and equipment to accommodate a new tissue line. First Quality Enterprises has agreed to make a significant investment at the site along with a commitment to create 184 new, full-time jobs over the next three years and retain more than more than 3,000 employees statewide. Project completion and start-up of the new facility is anticipated for the first half of 2019.

First Quality Enterprises received a funding proposal from the Department of Community and Economic Development that includes a $1 million Pennsylvania First program grant and $250,000 in WEDnetPA funding for employee training. First Quality has also been encouraged to apply for a $2 million low-interest loan through the Pennsylvania Industrial Development Authority (PIDA).

The project was coordinated by the Governor’s Action Team, an experienced group of economic development professionals who report directly to the governor and work with businesses that are considering locating or expanding in Pennsylvania, in collaboration with the Clinton County Partnership.

“First Quality has been a staple in our community for many years and this expansion positively enhances their impact on many working families,” said state Rep. Michael Hanna. “I am honored to have been a part of securing state funding for this expansion project, as it is guaranteed to boost economic growth in Clinton County.”

“We are very pleased that First Quality is again expanding in our greater community. We sincerely appreciate the company’s latest investment and providing new employment opportunities for our area,” said Mike Flanagan, president, Clinton County Economic Partnership. “First Quality is a first class operation. We would also like to thank DCED and Governor Wolf for providing a state financial package to assist in the company’s growth. The state has always been a great partner to work with on various projects throughout the years.”

First Quality Tissue is a member of the privately held First Quality family of companies a diversified group that manufacture a variety of adult, infant, and feminine care products, consumer paper products, bottled water, and engineered non-woven goods. The company serves the retail, institutional, and commercial channels throughout the world.

Last year, DCED approved nearly $1.1 billion in low-interest loans, tax credits, and grants for projects across the commonwealth and secured private sector commitments for the creation and retention of more than 245,000 full-time jobs. In the same timeframe, the Governor’s Action Team completed 77 projects – creating and retaining more than 36,800 jobs.

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