2007-05-09 20:03:30 -

PHILADELPHIA, May 9 /PRNewswire-USNewswire/ -- Governor Edward G. Rendell announced today that Tasty Baking Company is investing more than $75 million to relocate its headquarters and Philadelphia manufacturing operations to the Philadelphia Navy Yard. The company, which manufactures the Tastykake(R) brand of snack cakes, pies, cookies and donuts, will also retain hundreds of jobs.

"Tasty Baking is a great example of how a 'home grown' business can flourish in Pennsylvania," Governor Rendell said. "Created more than 90 years ago in Philadelphia by a baker and an egg salesman, this nationally-recognized

company has become one of Pennsylvania's true success stories with annual sales exceeding $250 million.

"This is a company that could have moved its headquarters and manufacturing operation anywhere, but chose to continue doing business where it began.right here in Philadelphia.

"Plenty of other businesses agree with Tasty Baking that Pennsylvania is the place to do business. We are working hard to foster a competitive business environment where companies can thrive, while at the same time creating new opportunities for Pennsylvania's working men and women."

Tasty Baking will lease a 345,500-square-foot baking and distribution facility from Liberty Property Trust. The facility, which will include a state-of-the-art production facility and packaging lines, as well as a technology-enhanced distribution center, is slated for completion in 2009 and is expected to be fully operational by 2010.

The company also will lease a new 35,000-square-foot "green" headquarters/office building from Liberty. The Leadership in Energy and Environmental Design-, or LEED-, certified building will employ energy efficient heating, ventilation and air condition, or HVAC; water conservation; recycled building materials; and day-light harvesting.

"Pennsylvania is second only to California in our number of LEED-certified buildings," Governor Rendell said. "That's one of the reasons why I recently proposed the Energy Independence Strategy, calling for up to $500 million in grants and low-interest loans for projects to have more buildings become LEED certified. Overall, the strategy will save consumers $10 billion in energy costs over the next decade, reduce our dependence on foreign fuels and create more jobs by expanding our leadership in manufacturing energy technology."

As part of its project, Tasty Baking also will invest in new equipment and technology and provide training to its employees.

"A new manufacturing and distribution facility is the critical next step in the transformation of Tasty Baking Company and our goal to increase shareholder return," said Charles P. Pizzi, company president and CEO. "This project would not have been possible without the partnership that exists between the state, local and federal officials. Today's announcement means our longstanding commitment to the community in which we have resided for more than 90 years will continue."

Tasty Baking's project was coordinated by the Governor's Action Team, or GAT, which is comprised of economic development professionals who report directly to Governor Rendell and serve as a single point of contact for businesses considering locating or expanding in Pennsylvania. The team works with domestic and international businesses and professional site consultants on projects possessing significant investment, job creation and/or retention opportunities.

The GAT helped the company secure a $10.6 million financial package offer from the Department of Community and Economic Development that includes a loan of up to $10 million through the Machinery and Equipment Loan Fund and a grant of up to $600,000 through the Opportunity Grant Program.

The Philadelphia Industrial Development Corporation also worked on the project, and is eligible to apply for a grant of up to $2.4 million through the Industrial Sites Reuse Program on behalf of Liberty Property Trust.

In Philadelphia, there have been 37 GAT projects successfully completed since January 2003. These projects total commitments for 5,660 new jobs created and 17,286 jobs to be retained. The commonwealth has offered more than $101 million in state assistance for these projects, which will leverage more than $408 million in additional investment.

Statewide since January 2003, the Governor's Action Team has successfully completed 803 projects resulting in commitments for the creation of 85,532 new jobs and the retention of 193,250 existing positions. The commonwealth has offered more than $1.5 billion in assistance for these projects, which will leverage more than $9.5 billion in additional investment.

Founded in 1914, Tasty Baking Co. is one of the country's leading bakers of snack cakes, pies, cookies, and donuts. The company's two manufacturing facilities are located in Pennsylvania.one in Philadelphia and one in Oxford. Tasty Baking offers more than 100 products under the Tastykake(R) brand name. To learn more about the company, visit http://www.tastykake.com/.

For more information on the Energy Independence Strategy, visit http://www.depweb.state.pa.us/.

For information on the Governor's Action Team, the Citizens Job Bank program and other DCED programs, visit http://www.newpa.com/ or call 1-866- GoNewPA (1-866-466-3972).

The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit his Web site at: http://www.governor.state.pa.us/.

CONTACT: Teresa Candori 717-783-1116 Penny Kline (DCED) 717-783-1132

Source: Pennsylvania Office of the Governor