Electrica in Two Rivers

Electrica Expanding to Two Rivers


The City of Two Rivers was selected as the home of a new production facility by Electrica, an Italian manufacturer of electrical components for appliances and general purpose applications. Representatives of Electrica signed a lease agreement with city officials on Tuesday, Dec. 7 and will lease the city's business incubator at 1429B Wentker Court. The company opened its US subsidiary, Manitowoc Relay and Protector, in the fall of 2005 and ultimately hopes to build its own facility in the city.	Electrica Web Site Electrica is a global leader, dedicated to the manufacture of electrical components for appliances and general purpose applications. Electrica is specifically dedicated to serving compressor motor manufacturers all over the world. Electrica is a VISION 2000 certified manufacturer	Electrica Sales Offices Manitowoc, WI Harrisburg, PA Belgium Brazil China France Germany Japan Mexico Portugal Singapore South Africa South Korea Spain Taiwan Thailand Turkey United Kingdom.
Electrica expects to hire about six employees initially and could add twelve or more additional positions over the next five years. City Manager Greg Buckley said the selection of Two Rivers came about because of Electrica’s past relationship with the former Paragon Electric Company, and it’s long-term relationship with the people of Paragon. He noted that city officials first met with Electrica representatives more than 6 years ago to discuss the company’s plans for expanding its North American sales and ultimately developing a U.S. production facility. "Electrica is a global leader in the electrical component industry,” Buckley said. "Their decision to locate here presents an opportunity for growth and diversification in the city's manufacturing employment base. We welcome them to the community." He also noted that two local residents and former Paragon officials, Tom Finley and Paul Taddy, played a large role in Electrica’s consideration of Two Rivers. A former Paragon manager, Earl Horntvedt, operates the North American sales and marketing office for Electrica in Manitowoc. This will be the first U.S. production facility for Electrica, said Fabio D’Arrigo, managing director of the company, based in Milan. “We are used to long-term relationships with our suppliers, employees, and customers” said D’Arrigo. “We are looking to extend this unusual business practice with our existing and future friends in this community.” Electrica will lease the city’s 5,000 square-foot-business incubator building at 1429B Wentker Court on the city’s south side. Fifty percent of the lease price will be credited to the future purchase of land in one of two industrial parks in Two Rivers. The city will also work with the firm to secure Development Zone Tax Credits and Customized Labor Training funds, explained Dan Pawlitzke, the city’s economic development supervisor. “These incentives help us attract businesses like Electrica," Pawlitzke said. "They will help make it economically feasible for Electrica to expand its manufacturing operation into the United States and to attract and train employees for quality, secure positions. Along with its North American sales office in Manitowoc, Electrica has sales/distribution outlets in Harrisburg, Pa., Belgium, Brazil, China , France, Germany, Japan, Mexico, Portugal, Singapore, South Africa, South Korea, Spain, Taiwan, Thailand, Turkey, and the United Kingdom. The company had sales of about $21 million in 2003. Electrica was founded in 1956 and became a division of AMF, Inc. in 1962. In much the same manner as Paragon, Electrica again became an independent company through a leveraged buyout in 1987 after the takeover and liquidation of AMF. D’Arrigo said hiring would begin around May of 2005, and people interested in a position with Electrica should send their resumes to the new building address, 1429B Wentker Court, Two Rivers, Wisconsin, c/o Earl Horntvedt. Electrica will initially be hiring for a plant manager position, as well as several light assembly manufacturing positions. Details of the Agreement Electrica will lease facility at 1429B Wentker Court in Two Rivers for $800 per month until it decides to build, or for 5 years, whichever is less. Then 50% of the $800 rent paid during the first 30 months of occupancy is a direct credit towards the purchase of land priced at $11,000 per acre. After 30 months and up to 60 months, the rent will increase to $1,250 per month with a 50% rent credit. If Electrica rents for the full 5 year lease term, the rent credit would total $30,000, which would buy 2.78 acres of fully improved vacant land in either Two Rivers industrial park. The City of Two Rivers has access to a pool of State Tax Credits for businesses expanding in the Two Rivers Development Zone. Tax Credits are in the range of $5,000 per employee hired. Customized Labor Training money is available to re-train those who have been laid off due to a plant closing or to train employees for companies that have installed a new production process. The program is designed to assist companies that are investing in new technologies or manufacturing processes by providing a grant of up to 50% of the cost of training employees on the new technologies. The program’s primary goal is to help Wisconsin manufacturers maintain a workforce that is on the cutting edge of technological innovation.		Product Lines OVERLOAD PROTECTORS START RELAYS COMBINED UNITS SNAP-ACTION SWITCHES
Officials of Electrica of Milan, Italy and the City of Two Rivers sign the lease documents that will allow Electrica to expand to the U.S. Front row from the left, Two Rivers City Manager Greg Buckley, Electrica Managing Director Fabio D'Arrigo of Italy. In the back row, Two Rivers Economic Development Supervisor Dan Pawlitzke and Earl Horntvedt of Electrica's sales and marketing office in Manitowoc.