Empire State Development, Schenectady County IDA Support Plans To Make Rotterdam Von Roll’s U.S. Headquarters

July 24, 2007

Rotterdam, N.Y. (July 24, 2007) – Von Roll, a worldwide leader of electrical insulation products for the industrial market, will invest more than $20 million in its Rotterdam plant, significantly improving its U.S. manufacturing capabilities and making Rotterdam the North American headquarters for Von Roll USA, Inc.

“After a thorough review of our global manufacturing capabilities and our production strategy for the coming years, we have decided to select the Rotterdam plant as one of the key production sites for the future,” said Jurg Brunner, president of Von Roll USA, Inc. “We are deeply appreciative that key partners, including state and local government officials and agencies, IUE Local 301, which represents our employees, National Grid, and many others are working with us to make these ambitious plans a reality.”

“We are thrilled with the investment that Von Roll USA, Inc. is making in New York state,” said Daniel C. Gundersen, chairman of Empire State Development/Upstate. “This serves as yet another example of the growing confidence manufacturers are developing in Upstate and New York as a whole. This is a positive boost for the economy of Rotterdam and we join them in their enthusiasm for the Schenectady region.”

“Schenectady County is proud to have helped to coordinate this expansion as part of our unified economic development program,” said Susan E. Savage, chair of the Schenectady County Legislature. “Von Roll USA, Inc. is an important employer in our community and when we learned of this opportunity to win a new investment and new jobs at our local plant we moved quickly to mobilize support to help us bring this new investment to Schenectady County. We appreciate the company’s investment in our community, Governor Spitzer’s support, the support from members of IUE-CWA Local 301 and many others who helped land this significant new investment.”

The major expansion project will add 25,000 to 30,000 square feet to the plant, bring in state-of-the-art equipment, update existing equipment, add 50 jobs over five years, and improve the company’s development, testing and business infrastructures.

Von Roll USA, Inc. is the American arm of the Swiss company Von Roll Holding Ltd., which has a leading market position in its core business of electrical insulation.

In return for Von Roll’s investment of $20 million over two years, the company will receive a number of incentives from the state and county governments to upgrade and expand the Rotterdam plant. Pending local government approvals, Von Roll plans to begin construction as soon as the appropriate permits are in place.

Von Roll USA, Inc. will upgrade existing lab facilities, office and production space. The company will also construct new manufacturing, warehouse and office space at the site located in the Town of Rotterdam. The Rotterdam plant expansion will include significant investment in development and manufacturing processes focusing on creating centers of competence for Liquids and Mica product design and production.

Von Roll USA, Inc. will be eligible to apply to receive Empire Zone Benefits as a result of a planned expansion of the current zone in the City of Schenectady to the Rotterdam site.

The Schenectady County IDA will provide a sales tax exemption on construction materials.

Schenectady County will also include the Von Roll USA, Inc. site in a planned expansion of the Capital Region Foreign Trade Zone. This program will allow raw materials to be brought to the site duty free encouraging manufacturing to be done in the United States versus overseas locations. This program will help Von Roll USA, Inc. compete with other locations around the globe.

Von Roll USA, Inc. is eligible to apply for $400,000 from Empire State Development in return for the company’s commitment to expand, invest and create new jobs a the site.

Von Roll USA, Inc. is also eligible to apply for $250,000 in funding from National Grid’s economic development program to help fund electric and gas infrastructure costs related to the expansion project.

“While Von Roll looked at several sites around the U.S. for this investment, we decided to expand in Rotterdam because of the critical knowledge base of the local workforce and the support of state and local officials,” Brunner said. “This investment will strengthen Von Roll’s unique position as a full insulation system provider. The expansion will allow design, productivity and quality improvements and bring long-term, sustained benefits to our customers.”

The operational activities of Von Roll, a company listed on the SWX Swiss Exchange (ROL.SW), are focused on the global supply of solutions in the fields of electro insulation to increase the energy efficiency of electricity generators and electro motors and fibre-reinforced composites. Von Roll has operations in over 30 locations around the world.

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