Governor Shapiro Announces Homegrown Food Manufacturer Shank’s Extracts to Invest $30.5 Million in Lancaster County Expansion
May 19, 2023
The 124-year-old Pennsylvania company’s expansion will create at least 83 new jobs in Central Pennsylvania, retain 234 jobs statewide, and boost the Commonwealth’s growing food manufacturing industry
Harrisburg, PA – Today, Governor Josh Shapiro announced that Shank’s Extracts LLC – a specialty ingredient, flavors and botanical extracts company – will expand operations at its East Hempfield Township headquarters in Lancaster County and invest $30.5 million into the project, creating at least 83 new jobs, and retaining 234 statewide jobs within the next three years.
As part of its expansion, Shank’s Extracts’ facility will support additional liquid and dry manufacturing, packaging, and refrigerated storage. This project will also include installation of other manufacturing capabilities at the facility.
Since taking office, Governor Shapiro has prioritized attracting businesses to Pennsylvania and retaining those already operating here, and his first budget proposal includes significant investments in growth and economic development for businesses, workers, and communities. Governor Shapiro has overseen a renewed focus on economic growth, and earlier this month, his Administration announced an $81 million investment to expand innovation-focused manufacturing in Western Pennsylvania.
“Having a homegrown company like Shank’s Extracts choose to expand in Pennsylvania sends a clear message that we are open for business and that we are working towards becoming a leader in innovation, job creation, and economic development,” said Governor Shapiro. “We’re aggressively competing with other states and countries to attract new businesses and keep growing Pennsylvania-based companies here, and I am focused on making the investments that will continue helping companies like Shank’s expand and bring more investments and jobs to Pennsylvania. I’m excited that this expansion means more people across the country and around the world will get to taste the flavors made right here in the Commonwealth.”
Shank’s Extracts received a funding proposal from the Department of Community and Economic Development (DCED) for a $332,000 Pennsylvania First grant and a $166,000 workforce development grant to train workers.
“Shank’s Extracts has a long and impressive history in Lancaster County, and DCED is proud to have worked with the company to ensure they continue to grow right here in Pennsylvania,” said DCED Secretary Rick Siger. “The Commonwealth has a lot to offer to food manufacturers, from our strategic location, to our abundant natural resources, to our dedicated and skilled workforce. Governor Shapiro’s budget includes a proposed $12 million increase for the Pennsylvania First Program, which will help us to invest in more expansion projects like this one.”
Shank’s Extracts – a top producer of vanilla extract in the United States – has been headquartered in Lancaster County since its creation in 1899 and makes and distributes more than 2,400 products, including flavors, emulsions, botanical extracts, colors, and sauces for retail and food industry customers globally. Universal Corporation (NYSE: UVV), a global business-to-business agri-products supplier to consumer product manufacturers, purchased Shank’s Extracts in October 2021.
“The expansion of our facilities at Shank’s Extracts will enable us to enhance and expand the product offerings of our plant-based ingredients platform,” said George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal Corporation. “Through this platform, we provide a variety of value-added manufacturing processes to produce high-quality, specialty vegetable-and fruit-based ingredients, and we appreciate the support and partnership of the Commonwealth of Pennsylvania in this endeavor.”
“I am thrilled that Shank’s Extracts has chosen to expand and invest right here in Lancaster County,” said Sen. Ryan Aument (R-36). “When businesses come to our communities, our residents benefit from more job opportunities and increased local economic activity across numerous sectors, as the indirect impact of these investments on other industries is immeasurable. I’m grateful for the policy work we’ve been able to accomplish to send a strong message that our state is competitive and prepared to support businesses, new and old, that provide a better quality of life for Pennsylvania residents.”
Pennsylvania’s agribusiness, food, and beverage production industry is rapidly growing across the Commonwealth and supported 140,000 jobs and $38.3 billion in output in Pennsylvania’s economy in 2021. With assistance from the Shapiro Administration and the Governor’s Action Team, the food and beverage manufacturing industry is poised to continue growing in Pennsylvania.
“We are thrilled to celebrate the expansion of Shank’s Extracts, a company with long and deep roots in Lancaster County,” said John Biemiller, Director of Business Retention & Expansion for the Economic Development Company of Lancaster County. “This growth underscores the high quality of their products and their commitment to invest in their people, their equipment and their community.”
Governor Shapiro’s budget proposal increases funding to attract and retain businesses in Pennsylvania, including:
- A 50 percent increase in the Manufacturing PA Innovation Program, which connects Pennsylvania’s universities with businesses to spur innovation and job creation here in the Commonwealth.
- A 25 percent increase in the PA Smart Program so students who are looking to continue on to higher education in a computer science or STEM program can do that.
- A $12 million increase for the Pennsylvania First Program to fund more expansion projects and bring future business investments and high paying jobs to the Commonwealth.
The project was coordinated by the Governor’s Action Team (GAT), an experienced group of economic development professionals who report directly to the Governor and work with businesses that are considering locating or expanding in Pennsylvania.
Visit Governor Shapiro’s budget website to learn more about his commonsense solutions to the most pressing issues Pennsylvanians face.
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