Embassy Powdered Metals, Inc., a powdered metal manufacturer, will acquire American Sintered Technologies (AST) in Cameron County, PA and retain both companies’ existing workforces.
“Earlier this year, AST’s parent company, Fansteel, Inc., decided to seek a buyer for the company,” said Governor Tom Wolf. “It is great news that Embassy Powered Metals will acquire the AST facility and preserve the company’s jobs in addition to its own 49 existing employees. On behalf of the commonwealth and the region’s residents, I applaud Embassy for its expansion and for its significant contribution to Pennsylvania’s powdered metals industry.”
To fulfill a long-range business plan of expanding operations through acquisition, Embassy entered into a purchase agreement with Fansteel to buy Emporium Borough-based AST. Embassy will invest $3,050,000 in the purchase, which includes AST’s real estate and machinery and equipment assets. Embassy has committed to retaining a combined total of 96 full-time employees from the two companies over the next three years.
“It was a natural perfect fit for our growing business here in Emporium,” said Steve Aharrah, President of Embassy. “Both privately held companies were locally built on foundations of community partnership and shared success with customers, employees and vendors. These commonalities will help produce a seamless integration of our companies’ philosophies and services.”
Embassy received a funding proposal from the Pennsylvania Department of Community and Economic Development that includes a $250,000 Pennsylvania First Program grant and $32,400 in WEDnetPA funding for employee training. The company has also been encouraged to apply for a $1,250,000 low-interest loan from the Pennsylvania Industrial Development Authority.
The project was coordinated by the Governor’s Action Team, economic development professionals who report directly to the governor and work with businesses that are considering locating or expanding in Pennsylvania, in collaboration with the Cameron County Industrial Development Authority and the Central PA Strategic Early Working Network.
“Embassy Powdered Metals and American Sintered Technologies are both very important to Cameron County’s economy. Embassy’s acquisition of the assets of American Sintered Technologies will save 47 jobs that very likely would have been lost and will give Embassy the manufacturing space it needs to grow,” said Cliff Clark, executive director of the Cameron County Industrial Development Authority. “The Commonwealth’s investment in this project is highly appreciated
“We were pleased to be able to partner with the Governor’s Action Team to provide a significant regional impact within the local economy of Cameron County through a public-private partnership,” said Patrick Meese, director of the Central PA Strategic Early Working Network. “Working with our partners, we were able to work dynamically and fluidly with the government, financial institutions, and two companies to structure a merger and acquisition. The deal will stabilize the community, save and add jobs, and prepare a platform for the company’s growth. We are thankful for our continued partnership with GAT”.
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