Governor Rendell's World Trade PA Intitative Attracting New Foreign Investment, Producing Results in First Year

GOVERNOR RENDELL'S WORLD TRADE PA INITIATIVE ATTRACTING NEW FOREIGN INVESTMENT, PRODUCING RESULTS IN FIRST YEAR

OSSTEM TO ESTABLISH U.S. HEADQUARTERS IN BUCKS COUNTY, CREATE 600 JOBS

Governor Edward G. Rendell said today that his World Trade PA initiative is increasing export opportunities for Pennsylvania's businesses and generating more foreign investment in the commonwealth.

The Governor today announced that Osstem Co. Ltd., a dental implant manufacturer based in Seoul, South Korea, will create at least 600 new jobs with its first American manufacturing operation in Bucks County. The facility will also serve as the company's U.S. headquarters, with the products it produces being exported to several countries including Germany, Russia, China, Japan and Korea.

"With our diverse economy, Pennsylvania is home to a number of large companies that are regarded as international leaders in their respective fields," said Governor Rendell. "However, many of our smaller and mid-sized companies do not have the resources to market their products or services abroad. Faced with that obstacle, many of these businesses have found it difficult to compete and reach their growth potential.

"When we launched World Trade PA as part of this year's budget, we did so because we believed it was a worthy investment in Pennsylvania's economic future. By providing the resources to these smaller firms, we're opening the doors to new opportunities for them, exposing their businesses to new markets and new potential clients.

"On top of that, we're working hard each and every day to attract more foreign direct investment to the commonwealth. If Pennsylvania is to successfully capture its fair share of investment, the state must act aggressively to ensure that international companies are adequately informed and familiar with Pennsylvania's strengths—our leading research institutions, emerging industries, competitive business environment and skilled workforce.

"Attracting a solid international business like Osstem to Pennsylvania illustrates what we can accomplish through hard work. This company could have located its operations and U.S. headquarters anywhere in the country, but they picked Pennsylvania because we offer an environment where they can compete and succeed. With our easy access to investment capital, shovel-ready sites, skilled workforce, and business-friendly tax structure, more and more companies are learning that Pennsylvania is a great place to set-up shop," the Governor said.

"Governor Rendell and local leaders have created a business climate that is attractive to international investors and companies," said Seung Woo Song, Ossetem's managing director. "It was an easy decision to locate Osstem's first U.S. operations in Bucks County when considering the affordable business taxes and the incentives offered by the commonwealth. We also feel the area's reasonable cost of living will make it easier to attract a skilled sustainable workforce."

Osstem will purchase approximately 23 acres in Falls Township and will construct facilities totaling approximately 160,000 square feet. The buildings—to be built in two phases—will serve as the company's U.S. corporate headquarters, sales and marketing office, and manufacturing plant. The project is expected to create at least 200 new jobs within three years and a total of 600 jobs by the end of 2012.

The Department of Community and Economic Development's Center for Direct Investment (CDI) and the Governor's Action Team (GAT) worked with Osstem to secure a $2.55 million financial package that includes a loan of up to $2.25 million through the Pennsylvania Industrial Development Authority and $300,000 in Customized Job Training funds. The company is also eligible to apply for a $10 million loan through the Citizens Job Bank program, which offers extremely low-interest-rate loans to companies that commit to creating jobs in Pennsylvania. The total cost of Osstem's project will be $70 million.

"The Center for Direct Investment worked diligently to secure this project," Governor Rendell added. "The center arranged site visits and facilitated meetings, found housing for Osstem executives and schools for their children. This is just another example of how Pennsylvania is fostering relationships across the U.S. and abroad."

CDI and GAT also worked with the following organizations to bring Osstem to Pennsylvania: the International Visitors Council, the University of Pennsylvania, Select Greater Philadelphia, the Bucks County Economic Development Corp., Incheon Trade Office, and PECO.

World Trade PA, proposed by Governor Rendell in February, is working to attract businesses to Pennsylvania by generating new foreign direct investment that will continue to create jobs to the commonwealth. This ground-breaking program has quadrupled the state's international development funding.

The $15 million World Trade PA initiative is aimed at accelerating and expanding the commonwealth's current trade and investment activities. To advance the commonwealth's competitiveness abroad, the World Trade PA initiative will: increase Pennsylvania's share of trade in foreign markets; attract new foreign direct investment to secure jobs and capital; and leverage Pennsylvania's extensive network of overseas university graduates to promote new business opportunities for the state.

Osstem started as a small dental software firm in 1997. After approximately 10 years in the business, Osstem is experiencing unprecedented growth in the dental implant industry. The company became the leader in the South Korean implant market in 2004. This year, the company is considered the top dental implant manufacturer in the Asia Pacific market. Osstem has established seven subsidiaries and eventually plans to sell its implants in 50 countries.

http://www.state.pa.us/papower/cwp/view.asp?A=11&Q=456977