Gardner Denver will consolidate in Monroe

Gardner Denver, Inc. of Quincy, Illinois announced the consolidation of the North American manufacturing operations of its compressor and vacuum pumps used in OEM applications into its Monroe, Louisiana facility. Production from the Company's Sheboygan, Wisconsin operations will be transferred to Louisiana over the next twelve months. The project is expected to be completed by March 31, 2010, resulting in a net increase from 70 Monroe jobs to at least 301.

Barry Pennypacker, President and Chief Executive Officer of Gardner Denver, said, "Although a number of factors influenced the decision to consolidate production in Monroe, our primary focus was to ensure the long-term competitiveness of the business by continuing to drive cost and inefficiencies out of the operations, while increasing our flexibility through the implementation of the Gardner Denver Way. Reaching a decision to close the Sheboygan operation was difficult and we deeply regret the impact that this closure will have on our Sheboygan employees and the local community. In the long-term, we believe this consolidation positions us with the best business solution and is in the best interests of Gardner Denver and its shareholders. We appreciate the effort and commitment demonstrated by state and local government agencies, as well as the extensive employee support received in both Wisconsin and Louisiana.

"As part of moving the operations to Monroe, the state of Louisiana, through its Rapid Response Fund Grant, will reimburse Gardner Denver for most of the costs incurred in relocating its equipment and personnel from Sheboygan, provide annual payroll and sales tax rebates through its Quality Jobs Program and facilitate employee recruitment and training through its Louisiana FastStart Program. The City of Monroe will assist in the construction of a new 124,000 square foot manufacturing facility adjoining our existing manufacturing operation."

The Company currently employs approximately 366 people in Sheboygan, including approximately 280 in manufacturing operations and related support functions, and 76 people in Monroe.

Louisiana Governor Bobby Jindal, Louisiana Economic Development Secretary Stephen Moret, Monroe Mayor Jamie Mayo and Monroe area economic development and legislative leaders joined Gardner Denver officials announcing the consolidation to Monroe. The facility will more than quadruple from roughly 70 jobs today to at least 301 by the year 2011, including new jobs averaging $37,000 plus benefits.

Of the approximately 230 new jobs to be added, roughly 40-45 will be new management positions, the announcement said.

After the consolidation, Gardner Denver Thomas, or GDT, will become one of Louisiana's top 200 economic-driver firms out of roughly 120,000 total employers statewide, as measured by direct and indirect job impact.

Governor Jindal said, "This is a huge win for Monroe and our entire state. Gardner Denver's expansion shows that Monroe and all of Louisiana can compete with any other state in the country.

"Louisiana continues to outperform the national economy in large part because leading companies like Gardner Denver continue to announce expansions in our state. Today's announcement follows a recent trend. Since early 2008, leading companies have announced moves of their headquarters or other significant operations to Louisiana from states such as California, Georgia, Mississippi, Rhode Island, Virginia and now Wisconsin.

Several months ago, Gardner Denver officials announced that the company would relocate GDT's manufacturing operations from Monroe to Sheboygan or from Sheboygan to Monroe. Since then, Governor Jindal said state and local leaders in Louisiana have worked together to aggressively build the case for Monroe as the best site. State leaders committed an incentive package including a performance-based grant of up to $9 million for relocation expenses from the Rapid Response Fund, Louisiana's Quality Jobs program, and the Louisiana FastStart program for employee recruitment, screening, and training.

Gardner Denver Inc. is the leading worldwide manufacturer of reciprocating, rotary and vane compressors; liquid ring pumps and blowers for various industrial and transportation applications; pumps used in petroleum and industrial markets and other fluid transfer equipment serving chemical, petroleum and food industries. Gardner Denver is headquartered in Quincy, Ill.

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