Shumlin on IBM

[Chris Santee]

Gov. Peter Shumlin issued the following statement today on the planned sale of IBM Vermont facilities to GlobalFoundries:
"IBM announced this morning that it plans to sell its semiconductor production business, including its facilities in Vermont, to GlobalFoundries, a company with a strong track record of performance in semiconductor manufacturing.  GlobalFoundries plans to maintain the workforce and continue operations in Vermont, good news for the talented Vermonters employed by the plant and for our whole state.

IBM has been a part of the Vermont fabric for decades, driving economic development and innovation. But we have felt the uncertainty regarding IBM's future in Vermont for the last several years, as its business model has changed.   

That is why it is very good news for Vermont's long-term future that IBM's facilities here will be acquired by GlobalFoundries, a successful and growing chip manufacturing company that views our highly-skilled workers and advanced R&D and manufacturing facilities as important to its strategic growth.  We have learned in recent weeks that business at the plant is strong, and the plant is hiring more workers to meet demand. We expect that demand to continue and strengthen under GlobalFoundries.

I have spoken with leaders from both IBM and GlobalFoundries, and appreciate that GlobalFoundries plans to continue employment, investment, operations in Vermont. The transaction is subject to federal approvals and will take some months to close.  I am very confident that IBM and GlobalFoundries will partner with the State of Vermont to make this acquisition positive for our workforce and our economy.  I have told them that I will help make this a successful transition, and am committed to forging a strong Vermont partnership with the plant's new owner.  While any acquisition of this magnitude will bring about change, I am confident that Vermont will not just survive the transition to GlobalFoundries but will thrive.”

[ohhman]

Can tell it is an election time for him; hasn't given a dang too much until now so he is trying to get some brownie points.

[mkr]

Shumlin, Oh I am sure you had so much to do with this and his chat I am sure had such an impact....NOT.

[Chris Santee]

Welch Statement on GlobalFoundries Acquisition of IBM Vermont Facilities
BURLINGTON, VT – Representative Peter Welch issued the following statement in response to the announcement this morning that GlobalFoundries will acquire IBM’s chip-making facilities in Essex Junction:

“After much speculation, the highly skilled employees at IBM Vermont now know with certainty that GlobalFoundries will purchase their extraordinary facilities,” said Welch. “What they know, what Vermonters know, and what GlobalFoundries will soon discover, is that the work force and facilities at the Essex Junction plant are second to none in quality, innovation, and productivity.   I look forward to working with Governor Shumlin, IBM employees, and the state's business community to ensure that the plant continues to be a leader in semiconductor manufacturing.”

[Chris Santee]

Sanders Statement on Globalfoundries and IBM 
BURLINGTON, Vt., Oct. 20 – U.S. Sen. Bernie Sanders (I-Vt.) issued the following statement today after Globalfoundries announced that it will acquire IBM’s facilities in Essex Junction:

“Amid all of the rumors and speculation of the last few months, this has been a very difficult period for the highly-skilled and dedicated employees at the Vermont IBM facility.  Now, with the purchase of the plant by Globalfoundries, a new era is beginning.  We all hope that this new relationship will bring economic security for the employees and for the entire community.  I look forward to working with the employees, Governor Shumlin and the new ownership to make this new relationship a success.” 
 

[Chris Santee]

Lt. Governor Phil Scott issued the following statement about the sale of IBM’s Essex Junction plant:
“As we wait for exact details on what the sale of the IBM Essex Junction plant means for Vermont, our top priority must be the well-being of the thousands of employees – and the Essex Junction community -- whose futures were in limbo. Today’s news provides some much-needed certainty after months of questioning. It is my sincere hope that GlobalFoundries will keep these valuable, high-paying jobs here in Vermont. But as we know all too well, the devil is in the details, and I stand with others, ready to help in any way I can, and will do whatever is in my power to impress upon the plant’s new owners how critical it is that those jobs remain here and continue to contribute to Vermont’s economy.
 
“We must also learn from the past and partner to assist companies such as this in growing and succeeding in Vermont. It is my belief that we, collectively, need to establish policies in order to make Vermont’s business climate more conducive to growth for large-scale employers such as GlobalFoundries and IBM. I look forward to working in conjunction with other state leaders to ensure that’s our state’s business future is on more solid ground.”

[Chris Santee]

Gov. Shumlin, state and local officials, and business leaders address planned sale of Vermont IBM plant to GlobalFoundries
GlobalFoundries announces it will continue operations, investment, and employment in Vermont
ESSEX JUNCTION – Gov. Peter Shumlin was joined today by business groups, employers, local officials, lawmakers and others to offer strong state partnership to GlobalFoundries. The Santa Clara-based semiconductor manufacturer today announced its intention to purchase IBM’s facilities in Vermont and continue operations and employment at the plant. GlobalFoundries said that manufacturing at the facility will continue, with robust demand supporting plant operations and employment. The announcement ends months of uncertainty about the fate of the plant due to IBM’s strategic realignment of its business away from silicon chip manufacturing.

“I am very pleased that GlobalFoundries – a thriving, growing semiconductor chip manufacturer – sees the tremendous value in the products made by our talented workforce here in Vermont, and plans to continue manufacturing and jobs here, supported by world-class research and development.  This is good news for Vermont,” said Gov. Shumlin.  “I expect that this facility and its workers will not only survive this transition but will thrive under GlobalFoundries’ new ownership.” 

Gov. Shumlin has already spoken with leaders of both companies and is moving immediately to offer state support and assistance with permitting, infrastructure, workforce development and similar needs.  The transaction will require federal approval and is expected to take several months to close. Noting that the plant has been recruiting workers to meet demand for its chips, the Governor pledged to continue to help promote employment opportunities at the facility. 

In addition, Gov. Shumlin announced that he will immediately appoint an economic development and infrastructure advisory team, including relevant state agencies and partners in the private sector with deep experience in statewide economic development and commercial transactions, to work with the companies, the federal delegation, the Legislature, and others to evaluate ways the state can ensure a positive transition to GlobalFoundries ownership.  They will review the Vermont–specific aspects of the IBM/GlobalFoundries deal and help the Administration plan, negotiate, and implement Vermont’s response to the transaction, including review of infrastructure, labor force, municipal, state economic development, and permitting issues that may be implicated by the proposed transaction. The team will also recommend other strategies to attract and retain high–paying technology sector jobs at the IBM Vermont facilities, including potential use of the Vermont Enterprise Fund.

The Governor noted that employees at this plant and others in the region have faced uncertainty for more than a decade as IBM, facing global pressures far from the Vermont borders, has shed jobs in the semiconductor manufacturing business. The State has worked to protect jobs, support the plant and IBM’s Vermont leadership, and find good paying, Vermont-based jobs to utilize the talented workers who have faced change due to IBM’s new business model.

In recent years, the Shumlin Administration initiated regular leadership meetings with IBM officials in Vermont and New York.  This year, the State helped stabilize energy rates for the Vermont operations and partnered on a solar technology initiative.  The Administration also supported the creation of the Vermont Enterprise Fund to provide additional resources to the state to retain and expand jobs in Vermont. The Governor announced that the Administration will meet with GlobalFoundries to determine whether the Fund and other state programs can be utilized to provide additional support to this transaction.

Meanwhile, there has been a surge in demand for the plant’s products in recent months, and media reports have highlighted the value of the plant’s semiconductor commercialization research and manufacturing operations.  These align well with GlobalFoundries’ expanding reach in the semiconductor fabrication industry.  The plant is actively hiring workers to meet demand, including holding a job fair in partnership with the Department of Labor in recent weeks. 

“Everyone standing here today is thrilled to learn that GlobalFoundries plans to retain jobs, investment and operations in Vermont,” said Gov. Shumlin.  “We are committed to working with GlobalFoundries to forge a strong partnership with Vermont.  My Administration and our congressional delegation will work closely with GlobalFoundries, IBM, local officials, business groups and others to ensure that this acquisition is strongly beneficial to Vermont.  We are writing a new chapter today in Vermont innovation in the semiconductor industry.”