February 2001 - Kernan announces major expansion for Harlan Bakeries, Inc.

Indianapolis, Indiana - Rising to meet the needs of its customers, Harlan Bakeries, Inc. will begin a major expansion at its Avon facility, Lt. Governor Joe Kernan announced today.

A leading food processor and distributor of frozen raw dough, bagels, and bagel chips, the company plans to diversify its product line. Occurring in three stages, the $19.9 million expansion will create 64 new good-paying jobs by the time the project is complete in 2003.

"This is further proof that Indiana is a great location for growing companies," said Kernan, who leads the state's economic development efforts. "Harlan Bakeries started in Indiana and now has decided to expand here. It's significant investment in both Avon and the state, and it's a significant statement about the strength of our economy. We are thrilled to partner with Harlan to make this happen."

Plans call for additional shipping dock and office space, several large-capacity freezers, and production equipment. Training for 280 current employees and the new employees will also be required. The expansion will allow Harlan, which also operates a plant in Lafayette, to offer more products including breads, cookies, energy bars, and cakes.

"This expansion will allow us to diversify so that we can meet the needs of our customers and become a full service bakery," said Paul Hayden, chief financial officer for Harlan Bakeries. "The grant and tax abatement assures that we can continue to grow in Indiana, and that's great. It's a win-win situation."

To encourage the expansion, the Indiana Department of Commerce and the Town of Avon worked together to offer assistance. Commerce awarded the company a $105,000 Training 2000 grant to help with the training of employees. These kinds of grants help companies that undertake capital investment projects defray the costs of training new and current employees in basic work skills and company-specific skills necessary to support the project. Avon offered a 10-year tax abatement worth approximately $1 million.

"Harlan Bakeries is an important part of our community and an important part of our economy," said Tom Klein, Avon town manager. "We are pleased that they have chosen to stay and grow in our community, and we are happy that we were able to help them make that decision by offering the abatement."

Harlan Bakeries, founded in 1991, has the capacity to produce between 12 and 14 million bagels each week and is a supplier to major retail and grocery stores throughout the country. Harlan Bakeries has won numerous awards over the years including Best Bagel; Indiana University, Kelly School of Business, Growth 100 Award for four years; and most recently Ernst & Young, LLP and Indiana Heartland's Entrepreneurial of the Year Award.

Companies interest in learning more about the Training 2000 grant program or other Commerce incentives should contact the Business Development Division at (800) 463-8081, or access its Web site at www.indianacommerce.com