WEIDMANN Electrical Technology, Inc.

WEIDMANN Electrical Technology, Inc. Vermont Rural Ventures is partnering with National Development Council and Massachusetts Housing Investment Corporation, who together will provide $34.55 million in NMTC authority to construct a building addition and purchase and install an 800-ton hot press machine for lease to WEIDMANN Electrical Technology, Inc. (WETI). WETI is a wholly-owned subsidiary of WICOR, part of a privately-held multi-national corporation owned by WICOR Holding AG, based in Switzerland. WETI is the market leader for a broad spectrum of cellulose-based insulation primarily for high-voltage electrical transformers, but also for other applications where insulation from high temperature is required. WETI operates a specialty paper mill in St. Johnsbury, Vermont that is the only producer of transformer board insulation in North America; it supplies this insulation and associated fabricated components primarily for use in large transformers. The project consists of the construction of a 36,790 square foot addition to WETI’s existing manufacturing building and the purchase and installation of a new hot press. The building and hot press will be leased by the QALICB to WETI. The new hot press is an 800-ton piece of equipment that performs a critical function in the manufacturing process, drying and compressing the board to the specification needed to provide the desired insulating quality. The current hot press dates to 1955, is at the end of its useful life and must be replaced if the plant is to continue operating at its present capacity and maintain employment levels. This investment secures 260 jobs on the WETI campus in St. Johnsbury. These are among the best jobs in the region. The project will also create 60 FTE construction jobs. The State of Vermont responded to the potential for losing jobs at the WETI St. Johnsbury plant by offering a 10% state income tax credit on investment up to $80 million at the site and granting $25 million in Recovery Zone Facility Bond financing through VEDA. The new, larger hot press also offers the potential to increase capacity and therefore jobs in the future if higher demand levels materialize. A portion of the proceeds from the transaction will be used to establish a training program for machine shop operation (a twelve week program – both classroom and hands-on machine time) that local industry has requested, given that a substantial portion of the workforce will reach retirement age in the coming years. The Northern Community Investment Corporation is collaborating with Lyndon State College, White Mountains Community College, WETI, Vermont Aerospace, NSA Industries, and Northeast Precision, among others, to operate the program. Construction work at the WETI site is expected to be completed by February 2012 and equipment installation will continue until April 2012. Start-up and commissioning is planned for September 2012.