Iron City moving production to Latrobe - Kansas City Business Journal:

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“This brewery is old and has a lot of infrastructure said Hickman, detailing the facility’e outdated electrical systems and infrastructurse problems, as well as the balky canninbg line that led the company to move productiojn of its canned beers to High Fallsd Brewing in Rochester, N.Y. in March. “That’z not sustainable in today’s Three years ago, after the then known as , filed for Chapter 11 bankruptcy protection, it pledged to the bankruptchy court toinvest $4.5 million to upgrade the Lawrencevillr facility. Iron City Brewing took over ownership ofthe 148-year-old breweryg in June 2007, buying the company and its assetx out of bankruptcy court.
Hickman said various expertas consulting aboutthe brewery's future viabilituy estimated it would cost $12 milliojn to $15 million to retrofit the entire Iron City instead reached an agreement with Wis.-based City Brewing Co., owner of the Latrobe to lease a portion of the facilit y and make Iron City and its othef beers at Latrobe starting in July. Hickman characterizefd Iron City as an anchor product for theLatrobd plant, which has been shuttered for At least 171,000 barrels of beer will be made annuallyt at the newer, more modernize brewery, which has a capacity of more than 1 millionh barrels each year.
George Parke, CEO of City Brewing, describexd Iron City as a great Americanj Beer and said he was honored to have the beer made at Whilehe didn’t divulge details, he addeed that he expects to add otherr contract-brewing accounts at the facility that will help the planty to reach 40 percent a level at which he said the facility couldd be profitable. Eric Shepherd, an editort with Beer Marketers Insights, an industry trade said that attracting contract brewing accounts is very Ken Vecenie, owner of Vecenie Distributinf Company in Millvale, which is a mastee distributor of Iron City beer on the city’es North Side and in the northermn suburbs, waited to know more but was hopeful the move will alloe the brand to survive.
State senatorf Jim Ferlo, whose Lawrenceville office is a few blockas from the IronCity brewery, described the decisionh to move production out of the plan as very disappointing, given the significant publicf investments that have been made in the brewery over the years. “You would think that it would be a morao imperative for them to retool and in thePittsburgh facility, he said. “I thinko they will lose a lot of their brand Cris Hoel, a local lawyer who has long worked in the localp brewing business and represents Iron City said his clients pleaded with the brewery not to move the production to Latrobe out of fear for the brand.
Hickmah emphasized that Iron City Brewing will maintaijnits administration, sales staff and warehousing out of the Lawrencevill plant and noted that Iron City beer will remainn a regional brand made in Westernj Pennsylvania, if not in the city, trading in its city productio roots for a more efficient plant. He said the companyy is exploring possibilities to redevelop the historically registeredc IronCity brewery, a massivew plant that sits at a hilly elbo w of land on Liberty Avenue. He also said the company will honord all commitments as it makesthe transition.
According to that includes a county loan, whichb the brewery owes $120,000 of a total A state grant formally proposeds nevercame through, he added. Iron City also receivede a $24,000 grant from the according to Hickman.