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Posted on: November 9, 2010

Draka to locate its first U.S. cable assembly venture for wind in Hutchinson

HUTCHINSON, Kan. - Draka, a global manufacturer of wire and cable, announced plans today to locate its first U.S. cable assembly venture for wind in Hutchinson, Kan., where the company will supply the Siemens nacelle facility there. The announcement makes Draka the first supplier to choose Kansas specifically to supply the Siemens facility.

Draka will occupy an existing building at One South Lorraine and plans to begin operations Dec. 6. The company will create between five and 10 new jobs, with plans to double employment within a year.

The relocation was facilitated by the Kansas Department of Commerce and the Hutchinson/Reno County Chamber of Commerce.

“When Siemens chose Kansas for the company’s new wind nacelle production facility in spring 2009, we knew it wouldn’t be long before suppliers began coming to Kansas to supply the facility,” said Lt. Governor Troy Findley. “We’re excited that Draka has chosen to locate here, and we’re optimistic that they are just the first of many suppliers that will locate near Hutchinson to supply the Siemens plant.”

Draka is the eighth-largest cable manufacturer in the world and the third-largest in Europe. With global headquarters in Holland and U.S. corporate offices in Massachusetts, Draka develops, engineers, manufactures and sells cable solutions for applications in sectors such as irrigation, construction, cranes, movable bridges and marine oil and gas. Draka is also the main supplier of value-added cable for Siemens Wind in Denmark. For details, visit www.draka.com.

Siemens announced in spring 2009 that the company had chosen Hutchinson for the site of its first North American nacelle production facility. The company will host an event next month to celebrate its grand opening and shipment of the first nacelle units from the Hutchinson plant.

Kansas Wind Energy Background Located in the heart of the U.S. Wind Corridor, Kansas offers an ideal location for wind turbine manufacturing. Our central location and outstanding transportation infrastructure provide convenient and economical access to the regions with the greatest wind energy activity. Ranked second in the nation for wind energy potential, Kansas has more than 1,000 megawatts of wind generating capacity, with plenty of room for more. In fact, projections indicate that by 2030, the state’s power system could provide 7,000 megawatts for export from wind energy each year. Kansas is committed to the growth of this industry through the development of additional wind farms and a strong supply chain.

In 2009, Siemens Energy announced Kansas as the site of the company’s new wind turbine production facility, citing the state’s transportation advantages, pro-business climate and new financial incentives for wind manufacturing projects. A Kansas location offers companies in the wind supply chain ideal access to the new Siemens nacelle plant and numerous other manufacturers in the region.

Also in 2009, Kansas enacted a new financial incentive for eligible wind and solar equipment manufacturing projects that authorizes up to $5 million in bond financing for eligible projects. Additional cost savings are offered to expanding businesses through the elimination of property tax on new business machinery and equipment, as well as income tax credits, sales tax exemptions and financial assistance for training.

Timeline of Key Wind Energy Announcements in KansasIn May 2009, Siemens Energy announced Hutchinson, Kan., as the site of the company’s first U.S.-based nacelle production facility, creating 400 new jobs and $35 million in capital investment.

In December 2009, South Carolina-based Tindall Corporation announced it would bring a wind tower base production facility to Newton, Kan., creating 400 jobs and $66 million in capital investment.

In April 2010, Jupiter Group, a Denmark-based producer of wind turbine components, announced it would open a new manufacturing facility in Junction City, Kan., creating 120 jobs and $2.4 million in capital investment.

For more information, contact:

Joe MonacoPublic Information Officer
Kansas Department of Commerce(785) 296-3760
jmonaco@kansascommerce.com

Jade PirosCommunications & Events
Hutchinson/Reno County Chamber of Commerce(620) 662-3391
jadep@hutchchamber.com

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