GOV. BLAGOJEVICH ANNOUNCES $11.3 MILLION IN OPPORTUNITY RETURNS SUPPORT TO HELP MASSAC COUNTY MANUFACTURER EXPAND

The Illinois Department of Commerce and Economic Opportunity issued the following news release:

In his continued efforts to help Illinois businesses grow and create more jobs, Gov. Rod R. Blagojevich today announced an $11.3 million business investment package to Lafarge North America, Inc., a world leader in building materials, for the expansion and modernization of its cement production facility in Joppa. The company plans to invest $423 million towards the facility, which will help the company create 18 jobs and retain all current 118 jobs. The company also anticipates creating up to 800 construction jobs over the estimated 20-month construction period. Illinois Department of Commerce and Economic Opportunity (DCEO) Director Jack Lavin joined company and local officials at the Joppa facility to talk about this important project.

"Today we celebrate an important victory for Southern Illinois and Massac County, where a world-class company is continuing to invest in Illinois. Businesses certainly have many choices for where they want to locate, and this is another good example of a business choosing to keep jobs right here in Illinois. By creating a business climate that encourages innovation and investment and not raising taxes, we are helping many companies like Lafarge remain competitive, while putting more people to work," Gov. Blagojevich said.

Lafarge is the world leader in building materials, with top-ranking positions in all four of its businesses: Cement, Aggregates & Concrete, Roofing and Gypsum. With 80,000 employees in 76 countries, Lafarge posted sales of over $18 billion in 2005. The company's Joppa plant, which opened in 1963, produces cement for use in residential, commercial and public works construction projects across North America. The company is undertaking a complete upgrade and modernization at its Joppa facility to increase production and retain its employees. Lafarge-Joppa is owned by Lafarge Midwest, Inc., a subsidiary of Lafarge North America, the largest diversified construction materials company in North America

"With a world class business climate, great employees, strong community support and a growing customer base, Joppa represents the ideal location for Lafarge to invest," said Gaétan Vézina, Vice President of Manufacturing for the River Region at Lafarge North America, Inc. "The modernization and expansion project positions Lafarge to maintain our leadership position in the market and will ensure that Lafarge cement will continue to build a solid foundation in Joppa, Massac County and for the entire State of Illinois."

The Illinois Department of Commerce and Economic Opportunity (DCEO) is administering the business investment package. It includes Economic Development for a Growing Economy (EDGE) corporate income tax credits over the next ten years based on job creation; Employer Training Investment Program (ETIP) job training funds to enhance workforce skills; and a grant based on the company's use of at least 100,000 tons of Illinois coal per year, which will help it generate heat; a public infrastructure grant; a Community Development Assistance Program (CDAP) grant to Massac County for additional public improvements; and additional financial benefits, such as sales tax exemptions and tax credits for job creation and retention, resulting from the company's location within an Enterprise Zone.

"This Opportunity Returns support for Lafarge-Joppa is a great investment for the strength of our regional economy. A top priority for Gov. Blagojevich and I is to keep good jobs right here in Southern Illinois, and we will continue working together to help put even more people to work," State Sen. Gary Forby (D-Benton) said.

"Gov. Blagojevich and I understand that by partnering with leading companies like Lafarge, we are helping them increase their profitability, while keeping our hardworking men and women employed and creating even more jobs in the region," State Rep. Brandon Phelps (D-Harrisburg) said.

"By investing in companies that are investing in Illinois, Gov. Blagojevich and I are helping to provide better opportunities for our working families to get ahead. Lafarge's commitment to Southern Illinois will make a very important impact on our local economy," State Rep. John Bradley (D-Marion) said.

"This project, along with the coal and ethanol projects coming to our area, clearly show that Governor Blagojevich's Opportunity Returns program is truly providing new opportunities for the hard working families here in Southern Illinois. We thank the Governor for his efforts," Thomas Caliper, Executive Director of the Egyptian Building and Constructions Trades Council said.

"This tremendous expansion is great news for Southern Illinois. Lafarge and Gov. Blagojevich are both making important investments in our regional economy, which are going to create good new jobs," Ed Smith, Vice President and Regional Manager, Laborers' International Union of North America said.

"Gov. Blagojevich and I are excited to be working with Lafarge to expand and enhance its operations and keep jobs right here in Illinois. This investment is helping the company maintain its strong competitiveness in the marketplace and keep our regional economy moving forward," DCEO Director Jack Lavin said.

Lafarge has been committed to sustainable development for many years, pursuing a strategy that combines industrial know-how with performance, value creation, respect for employees and local cultures, environmental protection and the conservation of natural resources and energy. Lafarge is the only company in the construction materials sector to be listed in the 2006 "100 Global Most Sustainable Corporations in the World." To make advances in building materials, Lafarge places the customers at the heart of its concerns. It offers the construction industry and the general public innovative solutions bringing greater safety, comfort and quality to their everyday surroundings.

Illinois added more new jobs than any other state in July - 31,100 new jobs. This is the second time this year Illinois has created more new jobs than any other state, which has never happened before in recorded history. Illinois also led the nation in job growth in April. The total number of new jobs created this year is 76,400, which is the best start to a year since 1998, best in the Midwest and fifth in the nation. Since January 2004, Illinois has gained more than 151,000 new jobs, which is also best in the Midwest. The nineteen county Southern Illinois Opportunity Returns region has added almost 18,000 new jobs since January 2004.

The Illinois unemployment rate has dropped to 4.4 percent, which is its lowest level since October 2000. It has remained at or below the national rate for five consecutive months, which is the first time this has happened in seven years. The unemployment rate in Massac County has dropped 1.7 percent since January 2004. The federal Bureau of Labor Statistics and the Illinois Department of Employment Security compiled these statistics.

Site Selection Magazine also ranked Illinois third in the nation for attracting new and expanded corporate facilities in 2005, and Business Facilities Magazine named Illinois the top state for biotech growth last year.

Contact: Abby Ottenhoff, 312/814-3158; Rebecca Rausch, 217/782-7355; Gerardo Cardenas, 312/814-3158; Andrew Ross, 312/814-8193; Mark Harris, 312/814-0095; Gaetan Vezina, 816/200-3459.