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Office of the Governor
500 E. Capitol Ave.
Pierre, SD 57501
(605) 773-3212
FOR IMMEDIATE RELEASE: Tuesday, May 3, 2005
CONTACT: Mark Johnston, (605) 773-3212 or Mary Lehecka Nelson, 773-3301
AKG Break Ground on Mitchell Facility
Pierre, S.D. – State, local and company officials gathered in Mitchell today, May 3, to break ground on an 80,000 square foot facility which will be home to AKG Midwest, Inc., a German-based manufacturer of cooling systems and heat exchangers.
AKG announced last December that it would be expanding to Mitchell, a move which will create up to 150 jobs in the next three years. “This is an exciting opportunity for South Dakota, not only in terms of immediate job creation, but long-term potential for future growth in our state,” Gov. Mike Rounds said.
“One of the goals of our state’s 2010 Initiative is to increase the state’s Gross State Product by $10 billion by the year 2010. The estimated capital investment for this project alone is in excess of $7 million. Bringing outside dollars into the state will go a long ways toward helping us achieve our goal,” the Gov. added.
The Governor said this project was an excellent example of how the state can partner with a company to provide specialized training. “Our local technical institute is coordinating efforts with company officials to provide specialized training to individuals being hired by AKG. This training will be provided in a timely and cost-efficient manner,” Gov. Rounds said. “Providing this type of individualized training is a huge benefit to the company,” he added.
Dr. Bodo Marquardt, Director of Manufacturing and Technology for AKG world wide noted that “the State of South Dakota, Governor’s Office of Economic Development was instrumental in the AKG decision as to where to locate in the Midwest. The Governor and his development team worked hard to make sure that AKG had the information and employee training we needed for our manufacturing operations.” Dr. Marquardt also noted that the City of Mitchell and the Mitchell area Development Corporation had an excellent Interstate 90 industrial site ready for development by a manufacturing facility.”
John Clarke, President of the Mitchell Area Development Corporation stated that “with the construction of the new AKG Midwest facility, Mitchell has added another excellent manufacturing company to its industrial base.” Clarke went on to note that “Mitchell has an international, global trading presence with many local industries doing business overseas and that AKG certainly adds to that international presence. We are pleased that AKG selected Mitchell for its second facility in the United States,” he concluded.
AKG currently has 11 facilities located around the world. It first expanded to the United States in 1981 when it built a plant in Mebane, North Carolina. AKG Midwest, Inc. provides equipment to clients like Caterpillar, Gehl and John Deere.
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