Gov. Jack Markell made the case for his administration’s economic development strategy and budget priorities at a Delaware State Chamber of Commerce event in Dover on Wednesday.
Speaking at the legislative update and manufacturing conference of the chamber, Markell took note of a visit earlier in the day to South Korean poultry processor Harim, which now operates the former Allen Family Foods plant in Harbeson under the Allen Harim Foods name.
Work by the state, Sussex County government and others “saved hundreds of jobs at the plant,” Markell said. Allen ran into financial difficulties during a downturn in the industry.
Markell said any discussion of the economic performance of the state has to be viewed in the context of the situation in 2008 when he took office. At the time, “we were losing our auto industry” wth the closing of the GM and Chrysler plants, the poultry industry was going through tough times, Valero refinery had closed and it was not certain whether the state could hold on to jobs in its banking sector.
Markell said the refinery has since opened with the help of a state financial package, the Allen plant was saved and steel is going up for a Bloom Energy plant at the former Chrysler site.
Bloom is “months away” from manufacturing fuel cells at the plant, Markell said.
Markell said an ambitious plan to build Fisker vehicles at the former GM plant has “been much more challenging.” The company is now seeking capital and perhaps a buyer after a fededal loan that would have led to production of a car at the GM site was suspended.
Markell said in “dozens of cases,” the state was able to aid in efforts to bring manufacturing jobs throughout the state.
The state did suffer a major setback when AstraZeneca announced plans to slash 1,200 jobs from its north Wilmington headquarters as it realigns its research and development functions.
The governor said the company will remain an important part of the Delaware economy with 2,000 employees, but described the decision as “very disappointing.”
Markell also made a case to the business leaders for the taxes and spending policies of his administration as the proposed state budget is studied by the General Assembly.
Markell said the budget, if passed, would lead to a small reduction in the top income tax rate and the gross receipts tax. An gross receipts tax break for manufacturing is also in the package. The gross receipts tax amounts to a sales tax on businesses
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