Rea Magnet Wire Co. has invested approximately $250,000 in construction and modernization of its corporate headquarters building in Fort Wayne, Ind., to accommodate the addition of about 30 headquarters positions earlier this year.

Approximately 90 employees are now employed at Rea headquarters. The job increase resulted from Rea Magnet Wire’s purchase of certain assets formerly held by Fort Wayne-based Phelps Dodge Magnet Wire Co. on February 10, 2006, and Rea’s efforts to retain as much of the Phelps Dodge workforce as possible.

“Rea Magnet Wire’s purchase of the Phelps Dodge Magnet Wire assets makes sound business sense in many ways, including giving Rea access to a great workforce with experience in the magnet wire industry,” said Larry Bagwell, Rea Magnet Wire’s Chairman and CEO. “We are particularly fortunate that seasoned production, administrative, staff and management employees are available to help assure Rea Magnet Wire a smooth transition into position as the market-share leader in the North American magnet wire industry.”

Combining the two corporate staffs required considerable construction and modernization of office space in Rea Magnet Wire’s headquarters building, including new computer hardware, furniture and fixtures. In addition to the 30 jobs brought to Rea this year, up to 20 new positions could be added through 2009.

The State of Indiana, through the IEDC, and the City of Fort Wayne, through the Fort Wayne-Allen County Economic Development Alliance, worked together to provide a performance-based incentive package that helped Rea Magnet Wire maximize its expansion project.

The economic development incentives offered by the IEDC include up to $50,000 in technology training grants for Indiana resident employees, up to $1,100,000 in tax credits over ten years on anticipated job creation, and up to $22,500 in tax credits for qualified capital investment in the expansion project. Local property taxes on the qualified investment will also be reduced through the Enterprise Zone Investment Deduction program. The City also provided a grant over two years totaling $200,000 to Rea Magnet Wire to assist with the overall expansion project.

“Fort Wayne is proud to have been the home of the U.S. magnet wire industry for nearly a century,” said Fort Wayne Mayor Graham Richard. “The City also benefits from many technology companies started here through the years because of the presence of the local magnet wire industry. The City gladly extends economic assistance to help facilitate this expansion project.”

In addition to retaining former Phelps Dodge corporate employees, Rea Magnet Wire also employs about 200 hourly and salaried workers in the former Phelps Dodge magnet wire plant at 4300 New Haven Avenue in Fort Wayne. They are included in the approximately 600 former Phelps Dodge employees now employed by Rea throughout North America.

Rea Magnet Wire Company, Inc., was founded in Fort Wayne, Indiana, in 1933 and is one of the world’s largest manufacturers of magnet and nonferrous wire products. Rea produces copper, aluminum and brass insulated magnet wire and bare wire used in the manufacture of motors, transformers and coils. Rea also manufactures a number of specialty wire products. Rea Magnet Wire has eight manufacturing locations in North America: two in Fort Wayne and one in Lafayette, Indiana; Las Cruces, New Mexico; Guilford, Connecticut; Ashland, Virginia; Osceola, Arkansas; and Monterrey, Mexico. The company also operates two joint venture manufacturing facilities in China. Rea currently employs approximately 1,275 people in North America.

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