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Clabber Girl Expands to Meet Growing Demands

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It's Not Just Baking Powder Anymore!

TERRE HAUTE, Ind. (September 19, 2006)-Clabber Girl Corporation, manufacturer of America's No. 1 retail baking powder, today announced that it will expand its operations with an approximately 70,000 sq. ft. building addition that is expected to create 42 new jobs over the next four years. Clabber Girl will expand its current location, at Ninth and Wabash in Downtown Terre Haute.

"Our planned expansion allows us to grow and respond to the changing needs of the foodservice industry," said Gary Morris, president and chief operating officer of Clabber Girl. "We appreciate the support of the city of Terre Haute and the state of Indiana in this investment in the future of our city."

A few short years ago, baking powder was the only thing coming out of the Clabber Girl manufacturing facility, but the past six years have brought many changes to the 156-year- old company. Clabber Girl has expanded its product line to include corn starch, baking soda, cookie and brownie mixes, and an all-purpose baking mix. It has diversified distribution channels to include the industrial, food service, export, private label and fundraising markets. In June 2005 the company developed measures to convert to a peanut-free facility, requiring procedural changes and independent testing.

"The growth over the past six years has allowed us to add about 60 new employees," said Marla DeHart, executive director of corporate operations. "All of our existing production lines have been upgraded and we are operating at full capacity. The need for additional space is crucial to handle the unlimited opportunities we foresee in the food industry and this expansion puts us in a position to experience continued growth."

The state of Indiana through the Indiana Economic Development Corporation (IEDC), Terre Haute Economic Development Corporation and city of Terre Haute provided incentives to assist in the company's expansion. The IEDC offered incentives including up to $120,000 in training grants and approximately $150,000 in tax credits based on the company's planned capital investment. The city of Terre Haute has offered a ten-year real and personal property tax abatement.

"We've seen a string of jobs announcements in Vigo County, and today Clabber Girl joins a long list of new and expanding companies in the area. It's clear that west central Indiana has economic growth momentum, and we expect many more such announcements in the future," said Michael S. Maurer, Indiana Secretary of Commerce and IEDC president.

The building expansion will enhance the current manufacturing facility by adding a fully automated production line and incorporating principles of lean manufacturing and "just in time" production. The new machinery is designed to add flexibility to the production line by enabling the lines to be modified quickly and efficiently to move from one product to another with the need for very little down time. The pharmaceutical grade food processing facility will be designed to segregate allergen ingredients, such as gluten, peanuts, tree nuts, and soy giving Clabber Girl the ability to comply with the growing demand for nutrition and ingredient labeling regulated by the FDA. The new building is estimated to be completed in the fall of 2007.

"Clabber Girl's decision to continue investing in Terre Haute is another example of the growing confidence in our community," said Mayor Kevin Burke.

Founded, owned and operated by the Hulman-George family, the company started operations in 1850. Hulman purchased the property at Ninth Street and Wabash Avenue in 1889. This is the first new construction on the site since the early 1920s. The company currently employs 185 people.

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Incentives

The Terre Haute Economic Development Corporation works closely with local and state officials to develop customized packages that meet the needs of business and the interests of the community.  The scope of project incentives is based on number and type of new jobs created or retained in Indiana, and new capital investments made in the community.

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Terre Haute EDC
630 Wabash Avenue, Suite 101
Terre Haute, Indiana 47807

Phone: (812) 234-2524
Fax: (812) 232-6054
E-mail: info@terrehauteedc.com