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SHASTA HOLDINGS, INC., RELOCATES TO BEAVER COUNTY; CITES ELECTRIC RATES AND TRANSMISSION PROJECT AS FACTORS

 SHASTA HOLDINGS, INC., RELOCATES TO BEAVER COUNTY;
 CITES ELECTRIC RATES AND TRANSMISSION PROJECT AS FACTORS
 ALIQUIPPA, Pa., Aug. 7 /PRNewswire/ -- Shasta Holdings, Inc., has signed a 15-year agreement to lease 110,000 square feet of space at the former Aliquippa works of LTV Steel in Beaver County, company officials announced today.
 The company will move its Coraopolis plant to the Aliquippa site.
 Currently, Shasta employs 100 workers at its Coraopolis plant. The move will preserve these jobs, and the company anticipates hiring an additional 90 workers over the next three years.
 Key factors in Shasta's decision to relocate to Beaver County were attractive electrical rates offered through Duquesne Light Company's Economic Development rider, competitive lease rates, support through the Beaver County Corporation of Economic Development and the proposed GPU-DQE transmission line, which is expected to stabilize electric rates in Allegheny and Beaver counties.
 High fixed overhead costs at the Coraopolis site forced the company to look into more than 20 relocation alternatives in and around Pennsylvania.
 "Eight months ago Shasta was ready to relocate to either Ohio or West Virginia," said Tom Woodske, director, Duquesne Light Economic Development. "Obviously, we are happy to keep the company as well as the existing and additional jobs here. It's really a tribute to western Pennsylvania's natural resources, including a skilled labor force, and a stable, reliable supply of electricity."
 "We were concerned about both the short term and the long term in making our decision," said John Shutey Sr., chairman and CEO, Shasta Holdings, Inc. "Duquesne Light was able to work out the short-term concerns through its current rate schedule and the prospect of competitive future energy rates made possible by the proposed GPU-DQE transmission project gave us every indication that Beaver County will continue to benefit from stabilized rates in the future."
 Duquesne Light and GPU Service Corp. have proposed the construction of a high-voltage transmission line that will carry power across the commonwealth to a substation near Harrisburg, Pa. As a part of the project, Duquesne Light will restart the Phillips and Brunot Island power stations.
 The companies will invest more than $500 million in the project, which is expected to result in $1.1 billion of electric rate relief to industrial and commercial customers over the next 20 years.
 "We have said all along that the transmission project will be good for the economic health of Pennsylvania," said Woodske. "In Shasta we already have an example of a business making a decision based on the expected benefits of the power sale."
 Shasta is the first company to relocate to the former Seamless Annex building of LTV Steel, owned by Mechanical Services Company, Inc., also located within the 300,000-square-foot complex.
 Spokesman David Kowalski of Mechanical Services Company, Inc., said: "Our Beaver County site offers many competitive advantages, including its proximity to the Ohio River, rail service, skilled labor and a stable power supply. The types of investment and commitment that Shasta, Mechanical Services Company, Inc., and Duquesne Light are making demonstrate what we need to bring this area back."
 Shasta specializes in metal conversion grinding and straightening. The company removes cracks and blemishes from slabs, billets and ingots produced by conventional and specialty steel manufacturers. The cracks and blemishes would result in defects in the finished products.
 -0- 8/7/92 R
 /CONTACT: John Shutey, chairman of Shasta Holdings, 412-264-7447/ CO: Shasta Holdings, Inc.; GPU Service Corp. ST: Pennsylvania IN: MNG SU: RLE


DM-LJ -- PG002 -- 8556 08/10/92 13:41 EDT
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Publication:PR Newswire
Date:Aug 10, 1992
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