Faribault manufacturing company gets gov't help to expand

The southern Minnesota town of Faribault got an economic shot in the arm Friday from the federal government.

SAGE Electrochromics, which makes energy-efficient windows, is planning a major expansion that will more than double its workforce.

SAGE Electrochromics is bringing together regional, state and federal incentives to build a $110 million manufacturing facility next to its corporate headquarters in Faribault, including a $72 million loan guarantee from the U.S. Department of Energy.

SAGE Electrochromics makes a high-tech glass that can change from clear to highly tinted with the flick of a switch.

John Van Dine, the company's founder and CEO, says the tinting ability of his "SageGlass" can greatly reduce heating and cooling costs. He compares it to eyeglasses, which change from clear to dark lenses in bright light.

"With our glass, our product, SageGlass, you can apply a low voltage and then control that tinting to whatever level you desire," he said.

Van Dine says SAGE Electrochromics makes the only commercially available electronically tintable glass for use in buildings. He currently has about 100 full-time workers at his headquarters facility in Faribault.

"Energy efficiency is one of the most important tools at our disposal for all kinds of challenges that we're facing."

He says the package of government assistance will allow him to dramatically expand and more than double his workforce to 260 employees.

The biggest portion of the government assistance is coming from the U.S. Department of Energy in the form of a $72 million loan guarantee.

The company is also getting nearly $18 million in state and local incentives, ranging from tax breaks and job training grants to a $1 million forgivable loan from the Minnesota Investment Fund.

Van Dine says the taxpayer help will allow his company to expand much more quickly than otherwise would have been possible.

"That's particularly important for two reasons," said Van Dine. "We need manufacturing job growth here in the United States. We desire to have green manufacturing job growth. And also, because of the financial situation, it can be challenging to procure capital reasonably in this climate."

Energy Secretary Steven Chu announced the $72 million loan guarantee during a telephone news conference with Minnesota's U.S. Sens. Amy Klobuchar and Al Franken.

The three cited the company's expansion as a perfect example of green job development in the U.S. to compete with green industry growth in other countries such as China.

During his U.S. Senate campaign, Franken frequently called for more green energy jobs, and he repeatedly mentioned SAGE Electrochromics.

During the conference call Franken said government assistance for companies like SAGE Electrochromics makes sense, because it creates jobs and will ultimately reduce energy consumption.

"Forty percent of our energy is used by buildings, so this investment -- the importance of this and the timeliness of this -- can't be overstated," said Franken. "Energy efficiency is one of the most important tools at our disposal for all kinds of challenges that we're facing."

SAGE Electrochromics plans to break ground on its new plant this summer. It's anticipating that more than 200 people will work on the construction project.

"It is very good news for this community," said Peter Waldock, the director of community development for the City of Faribault.

Waldock says the deal that's landed the new manufacturing facility in his city has been more than one year in the making. Waldock says getting the plant and the jobs is a big deal for Faribault.

"Initially there will be a large number of construction jobs involved in building the facility. Vendors, both during construction and after operations start, will have ongoing benefits from this expansion."

SAGE Electrochromics hopes to have its new plant operational by late 2011.

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