Pittsburgh (July 25, 2005) - Citizens Bank today announced Frontier Steel Company, which processes and distributes plate and flat-rolled steel products for use by the rail and transportation industry as well as other businesses, is expected to borrow $1 million from the Citizens Job Bank to support the company's growth and expansion in Pennsylvania. The project will create 40 new jobs during the next 3 years at Frontier Steel Company's facility on Neville Island, more than doubling the organization's work force.
The project brings the total number of jobs created in western Pennsylvania by the Citizens Job Bank to more than 1,000 and the total number of jobs in the state to nearly 1,400.
"Under the leadership of its president and CEO, John M. Matig, Frontier Steel Company has become one of the most successful manufacturing companies in the region," said Ralph J. Papa, president of the bank's Western Region. "We are very fortunate to have Frontier Steel Company in Pittsburgh, where manufacturing continues to play a vital role in our local economy. Citizens Bank is proud to join Gov. Ed Rendell to support this growing organization's continued expansion in Pennsylvania and success throughout the nation, and I commend the company for its commitment to job creation."
At a news conference today on Neville Island, where Frontier Steel Company has begun the process of relocating its manufacturing facility to a 33.5 acre industrial site originally developed by Dravo Corporation to construct river barges, Citizens Bank executives and Pennsylvania Gov. Ed Rendell applauded the company for its success in Pennsylvania.
"Public and private support of growing businesses like Frontier Steel Company is vital to expanding Pennsylvania's economy and creating jobs for our work force," said Gov. Rendell. "The Citizens Job Bank gives businesses owners like John Matig the incentives and resources they need to do what Citizens Bank has done since opening for business here in 2001-grow their business and create jobs for our work force."
This is the 14th Citizens Job Bank loan announcement since the program began in March 2004. To date, nearly $35 million in Citizens Job Bank funds have been used to create nearly 1,400 new jobs at 14 companies across Pennsylvania, including Frontier Steel Company.
The Citizens Job Bank, a public-private partnership created in conjunction with the governor, is a $100 million loan fund designed to attract jobs to Pennsylvania by providing simplified financing at below market rates. The goal is to create 4,000 new jobs in Pennsylvania over the next three years by helping companies expand their operations or relocate to Pennsylvania.
The Citizens Job Bank requires borrowers to create a minimum of one full-time job for every $25,000 borrowed at the fixed interest rate of 2.5 percent (4 percent below prime). The minimum loan size is $1 million and the maximum is $10 million. Companies eligible for the program include any public or privately owned businesses engaged in manufacturing and industrial work in Pennsylvania.
"As a result of our success in the marketplace and the growing demand for our products, we are in the wonderful position of having to expand our operations and create new jobs," said Matig, who founded the company in 1999 and today serves as its president and CEO. "The Citizens Job Bank was instrumental in our decision to expand our operations and create these jobs in Pennsylvania."
Frontier Steel Company is privately owned and operated. It employs 29 people, including key executives John D. Godwin, executive vice president for the company, and Michael Hancock, chief operating officer The company's sales last year totaled more than $26 million.
Companies interested in obtaining more information about the Citizens Job Bank can log on to the DCED Web site, inventPa.com or the bank's Web site, CitizensBank.com/jobbank. Also, companies in the western part of the state may contact Ralph Papa, president of the Bank's Western Region, and in eastern Pennsylvania, Rodger Levenson, Senior Vice President, Commercial Banking. A special hotline is available at 1-717-787-6245.
Citizens Bank of Pennsylvania is a $30 billion state-chartered bank with dual headquarters in Pittsburgh and Philadelphia. It has more than 400 branches, more than 660 ATMs. It also operates 10 retail branches and 10 ATMs in southern New Jersey. It is a subsidiary of Citizens Financial Group, Inc., a $137 billion commercial bank holding company headquartered in Providence, R.I. Citizens has more than 1,600 branches, approximately 3,100 ATMs and approximately 26,000 employees in a 13-state retail branch network and non-branch offices in more than 30 states. Citizens is the eighth-largest commercial banking company in the United States ranked by deposits. Citizens is owned by RBS (The Royal Bank of Scotland Group plc).