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Ground-Breaking of New Penninox Facility

July 13, 2001

July 13, 2001, Klaipeda-- U.S. Ambassador to Vilnius John F. Tefft will take part today in a ground-breaking ceremony to officially launch the Penninox investment project in the Lithuanian port city of Klaipeda. The event will mark the beginning of the implementation of Penninox Baltika, a steel-processing facility project. The new firm is a sister company of Penninox, headquartered in Pennsylvania, U.S.A. The facility is expected to begin producing stainless steel products for export to Western Europe via the U.S. within the next two years.

Ambassador Tefft cited the Penninox project as exactly the kind of foreign investment Lithuania needs to build its economy and create new jobs. "This new Penninox Baltika facility is an excellent marriage of Lithuania's high quality work force with some of the most advanced steel processing techniques in the world. From the moment construction begins, this investment will begin paying dividends in terms of jobs and income. In addition, I have every reason to believe that Penninox Baltika will be the kind of good corporate citizen that both Lithuanians and Americans expect."

Penninox officials noted that the company believes strongly in being a good corporate neighbor and integrating into the community. The company's dedication to charitable causes has been demonstrated through its on-going support for the Klaipeda Infants' Home and the Klaipeda Children's Hospital. In addition, Penninox is a promoter of the arts and has been a sponsor for events such as the annual Klaipeda Jazz Festival and the Musical Theater in Klaipeda's production of "Fiddler on the Roof."

The plant in Klaipeda will be the company's first such construction venture in Europe. It will be equipped with modern technologies. According to Judita Simonavičiūtė, Director General of Penninox Baltika, the investment of approximately $45 million is expected to create about 140 jobs. Once operating, the factory will process about 100,000 tons of steel production per year, mainly stainless steel hot-rolled angles and flats.