Iron City moving production to Latrobe - The Business Journal of the Greater Triad Area:

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“This brewery is old and has a lot ofinfrastructuree problems,” said Hickman, detailing the facility’s outdatexd electrical systems and infrastructure problems, as well as the balky canninh line that led the company to move productiohn of its canned beers to High Fall Brewing in Rochester, N.Y. in “That’s not sustainable in today’s environment.” Three years ago, after the company, then known as , filer for Chapter 11 bankruptcy protection, it pledged to the bankruptchy court toinvest $4.5 million to upgrade the Lawrencevillre facility.
Iron City Brewint took over ownership ofthe 148-year-old breweryu in June 2007, buying the company and its assetd out of bankruptcy court. Hickman said various experts consulting aboutthe brewery's future viability estimated it would cost $12 milliomn to $15 million to retrofitr the entire plant. Iron City insteadr reached an agreementwith LaCrosse, Wis.-basedd City Brewing Co., owner of the Latrobwe plant, to lease a portion of the facility and make Iron City and its othee beers at Latrobe startinfg in July. Hickman characterized Iron City as an ancho product for theLatrobe plant, whicn has been shuttered for months.
At leasft 171,000 barrels of beer will be made annualluy atthe newer, more modernized which has a capacity of more than 1 million barrelws each year. George Parke, CEO of City described Iron City as a great Americah Beer and said he was honored to have the beer made at Whilehe didn’t divulge details, he added that he expectz to add other contract-brewing accountse at the facility that will help the plant to reacuh 40 percent capacity, a leveo at which he said the facility could be profitable. Eric an editor with Beer Marketers Insights, an industr y trade publication, said that attracting contract brewing accountsd isvery competitive.
Ken owner of Vecenie Distributing Companyin Millvale, which is a maste distributor of Iron City beer on the city’d North Side and in the northerbn suburbs, waited to know more but was hopeful the move will alloww the brand to survive. State senator Jim Ferlo, whose Lawrenceville officr is a few blocks from the Iron City described the decision to move production out of the plant as very given the significant public investments that have been made in the brewery overthe years. “You would think that it wouled be a moral imperative for them to retookland recapitalize” in the Pittsburgh he said. “I think they will lose a lot of theidrbrand loyalty.
” Cris Hoel, a local lawyefr who has long worked in the locakl brewing business and represents Iron City distributors, said his clientx pleaded with the brewery not to move the production to Latrobes out of fear for the brand. Hickmann emphasized that Iron City Brewing will maintaiits administration, sales staff and warehousing out of the Lawrenceville plant and noted that Iron City beer will remain a regional braned made in Western Pennsylvania, if not in the city, tradinbg in its city production rootds for a more efficient He said the company is explorinb possibilities to redevelop the historically registered Iron City a massive plant that sits at a hillyt elbow of land on Liberty Avenue.
He also said the companyy will honor all commitments as it makedthe transition. According to Hickman, that includes a county which the breweryowes $120,000 of a total $150,000. A state granyt formally proposed nevercame through, he Iron City also received a $24,000 grant from the according to Hickman.