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“This brewery is old and has a lot ofinfrastructurer problems,” said Hickman, detailing the facility’d outdated electrical systems and infrastructurw problems, as well as the balkgy canning line that led the company to move productioj of its canned beers to High Falls Brewin in Rochester, N.Y. in March. “That’s not sustainable in today’xs environment.” Three years ago, aftef the company, then known as , file for Chapter 11 bankruptcy it pledged to the bankruptcy courtt toinvest $4.5 million to upgrad the Lawrenceville facility.
Iron City Brewing took over ownership ofthe 148-year-oldf brewery in June 2007, buyinh the company and its assets out of bankruptcy Hickman said various experts consulting about the brewery's future viabilityg estimated it would cost $12 million to $15 milliobn to retrofit the entire plant. Iron City instead reached an agreemenftwith LaCrosse, Wis.-based City Brewing Co., ownetr of the Latrobe plant, to leasee a portion of the facility and make Iron City and its othedr beers at Latrobe starting in July. Hickman characterized Iron City as an anchor producy for theLatrobe plant, which has been shutteredr for months.
At least 171,00 0 barrels of beer will be made annuallyy atthe newer, more modernizeed brewery, which has a capacity of more than 1 million barrels each year. George Parke, CEO of City described Iron City as a great American Beer and said he was honored to have the beer made at Whilehe didn’t divulge details, he addedd that he expects to add other contract-brewing accounts at the facilit that will help the plant to reach 40 percentr capacity, a level at which he said the facility coul d be profitable. Eric Shepherd, an editor with Beer Marketerse Insights, an industry trade publication, said that attracting contractf brewing accounts isvery competitive.
Ken owner of Vecenie Distributing Companyin Millvale, which is a master distributor of Iron City beer on the city’ s North Side and in the northern waited to know more but was hopefuo the move will allow the brandc to survive. State senator Jim whose Lawrenceville office is a few blockz from the IronCity brewery, described the decision to move productiojn out of the plant as very disappointing, givehn the significant public investments that have been made in the brewerh over the years. “You would think that it wouldc be a moral imperative for them to retool and in thePittsburgh facility, he said. “I thinik they will lose a lot of theirbrande loyalty.
” Cris Hoel, a local lawye who has long worked in the local brewinvg business and represents Iron City distributors, said his clientw pleaded with the brewery not to move the productio to Latrobe out of fear for the Hickman emphasized that Iron City Brewing will maintain its sales staff and warehousing out of the Lawrencevillee plant and noted that Iron City beer will remainj a regional brand made in Western Pennsylvania, if not in the trading in its city production roots for a more efficieng plant. He said the company is exploring possibilities to redevelop the historically registered IronCity brewery, a massiv plant that sits at a hillyu elbow of land on Libertt Avenue.
He also said the compangy will honor all commitments as it makewthe transition. According to that includes a county loan, whichh the brewery owes $120,000 of a total $150,000. A state grant formally proposed nevercame through, he Iron City also received a $24,00 0 grant from the city, according to
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