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Stimulus money will restart $40M contract at Voith

By Jim T. Ryan
11/4/2009 12:18 PM

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Photo/Jim T. Ryan

York County-based Voith Hydro will benefit from nearly $31 million in federal stimulus money to expand hydropower in the United States.

Seven hydroelectric projects around the country will receive the grants for upgrades through the American Recovery and Reinvestment Act, Kristina Johnson, under secretary of the U.S. Department of Energy, said today at Voith's plant in West Manchester Township.

One of the grants is to Pittsburgh-based aluminum manufacturer Alcoa Inc. for upgrades to its hydroelectric power plant in Robinsonville, N.C. The plant powers the company manufacturing facility there.

Voith will make two turbines for Alcoa, said E. Mark Garner, Voith's president and chief executive officer. Voith already had a $40 million contract with Alcoa for the project, but that work was on hold. The grant will allow Voith to restart work on the turbines and retain 40 jobs, he said.

Voith Hydro, a joint venture of Germany-based manufacturers Voith AG and Siemens AG, has been receiving steady work from renewed interest in hydroelectric power over the last two years, which has helped it grow by 27 percent, add 190 workers and double the value of its order backlog to more than $300 million.

The grants are expected to retain or create 1,500 jobs nationwide and leverage $117 million in private investment, Johnson said. The projects will add 187,000 megawatt-hours per year, or enough to power 12,000 homes, she said.

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