Author: Delaware Prosperity Partnership

Rural Lower Delaware Promised High-Speed Internet by 2020

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Rural lower Delaware promised high-speed internet by 2020

27 JULY, 2018

The Carney administration is taking a major step forward in a longstanding push to extend high-speed internet access to rural communities in downstate Delaware.

The governor on Tuesday announced he is issuing a call for help from any service provider willing to assist in closing the gap by 2020 — an effort backed by $1.3 million in taxpayer assistance.

“My most important job as governor is to make sure that Delaware has a strong, growing and competitive economy,” Gov. John Carney said. “Working with the private sector over the next two years, we expect to eliminate broadband deserts and ensure that every Delaware citizen and business has access to high-speed broadband service.”

Delaware has consistently been ranked as having some of the fastest internet speeds in the nation so as long as users live in New Castle County or major populations centers in Kent and Sussex.

Rural areas of the state, particularly below the Chesapeake and Delaware Canal, have been largely left out of the broadband revolution, due to the high cost of extending fiber optic cable and wireless services to relatively small numbers of customers.

That means residential customers in areas like Greenwood and Dagsboro struggle to binge watch the hottest series on Netflix, Hulu or Amazon.

But it also has serious consequences when it comes to economic development, health care and education.

“It’s hard to imagine any child doing their homework these days without a fast and reliable internet connection,” said James Collins, who runs the state Department of Technology and Information.

One solution to Sussex County’s limited number of family doctors and specialists has been to expand telemedicine, which allows doctors to treat patients remotely through streaming video connections. But the lack of broadband in rural communities means those who could most benefit from telemedicine cannot benefit.

Farmers like R.C. Willin increasingly rely on the internet to guide their tractors, monitor their yield and gauge soil conditions in the field. The 1,400-acre Willin Farms outside Seaford currently uses a Maryland internet provider to upload that data to the cloud and share the information across devices.

“Maryland is way ahead of Delaware,” he said. “It would cost me about $56,000 just to have Comcast bring its internet from my brother’s house down the street to here and then we would be spending $4,000 to $5,000 a month just to get the pipeline we need to use all of our internet-enabled equipment.”

The lack of high-speed connections also is hampering Kent and Sussex counties’ ability to attract new businesses, Collins said.

Carney chose to make his announcement in Seaford, a once thriving town that has struggled to attract major employers since DuPont Co.’s former nylon plant was sold to Invista in 2003. The facility that once provided high-paying jobs to nearly 5,000 workers today employs about 100.

The governor recently signed a bill that many say hampered Seaford’s efforts to attract new companies by limiting the role of organized labor.

But he praised the town’s work with Bloosurf, a Salisbury, Maryland-based company that is providing wireless broadband service to about three dozen customers throughout the town thanks to a state pilot program.

Kim Hopkins, who teaches nursing at Delaware Technical Community College and serves on the Seaford school board, said joining the pilot program made a big difference in her quality of life.

“Before there would be times when I had to grade papers at 2 a.m. and the internet would be so spotty that I would have to go to my mom’s house to finish,” she said. “Now I can grade papers, my one son can watch his Youtube videos, the older boys can play Nintendo while my husband is doing assignments for his school work. It’s a beautiful thing.”

The state is now hoping to use taxpayer dollars as an incentive to encourage other companies to provide similar services.

“The issue is the populations of these rural areas are not dense enough with potential subscribers to offset the capital costs involved for most of these for-profit companies,” Collins said. “Our goal is to provide some financial assistance to make that work more attractive.”

Most of the groundwork has already been accomplished. Under former Gov. Jack Markell, the state provided $1.5 million to a company now called Crown Castle to extend a backbone of fiber optic cable from Wilmington to Georgetown and then from Lewes to Seaford.

That allowed the state to add high-speed internet at 48 public schools and numerous public libraries. The Delaware Electric Cooperative has used that backbone to connect 26 substations across Kent and Sussex.

Now the state is planning to use more than $2 million to subsidize the efforts of private companies to further extend that reach from those lines to neighborhoods, businesses and individual homes.

The rural broadband grant program will rely on about $720,000 in fees previously collected from telecommunication companies and another $1.3 million in taxpayer dollars recently allocated by the General Assembly.

Those funds are in addition to the $1.2 million that Sussex County Council recently earmarked for expanding broadband access, including money to help offset the rental costs on state-owned towers.

“It’s taken a lot of partnerships and collaborations to get us to this point,” Collins said. “And today’s announcement will take us a long way to finally reaching our goal.”

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New Businesses, Expanding Arts: the Milton Renaissance

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New businesses, expanding arts: the Milton renaissance

25 JULY, 2018

During the economic downturn of the late 2000s, Milton had fallen on hard times.

There were empty storefronts, and the mood surrounding the town was down, said Ted Kanakos, mayor of Milton since 2016 and a resident in Sussex County for the last 20 years.

But there has been an uptick in the town since then.

“Milton is definitely in a renaissance,” he said.

Artisanal businesses have emerged, food trucks are a regular sight downtown and town festivals are commonplace.

In town, 73 out of the 74 storefronts have businesses in them, Kanakos said, and the mood surrounding the town has greatly improved with subdivisions being built and people moving in.

“The interesting thing about the economics of a town, a few years ago when the downturn of 2007 was really bad, the economy was bad, we were building almost no houses in our town,” Kanakos said. “Today, each year we set a record for building more houses, and when you have roofs, you have businesses. You can’t have businesses without people living in town.”

When the economy started to improve after 2010, people were more willing to take a risk on a business venture.

During the recession, when a business failed, stores would sit vacant for up to a year, Kanakos said.

“Now, if they don’t make it, that store is re-rented immediately, so there are a lot of people that want to be in business in our town,” he said.

But before the uptick, organizations such as the Milton Community Foundation had to help support businesses and art in the town.

Milton Community Foundation was a large part of the Horseshoe Crab Festival when it first started 15 years ago, said Steve Crawford, president of the Milton Community Foundation.

“We helped generate interest in town businesses through promoting festivals like the Horseshoe Crab Festival,” he said.

When he first moved to Milton in 2012, it felt vacant, he said. But since then, that has changed.

“I think we are small still, and is difficult to say directly that we helped bring businesses in, but we supported the community during the downturn and helped them that way,” Crawford said.

One business that has had success in Milton since opening is Suburban Farmhouse, a coffee shop and bakery on Federal Street.

The store opened in 2017, and when she first talked about opening it, people gave co-owner Kristen Latham a weird look.

“It has been an amazing outpouring of support since then,” she said. “We love this business, we love this town, we love this town’s people. They have rallied together and made us into such a success in such a short amount of time. I wouldn’t want us to be anywhere else.”

The store may add a new location in the future or expand, but right now, Latham is satisfied with where they are.

Milton is home, she said.

“A Milton local will come and they will bring their friend from Long Neck and their friend from Georgetown and Rehoboth, and they are all here,” said Jodi Sickles, co-owner of the Suburban Farmhouse. “We know everybody’s name and what they drink and I know what they want to eat.”

Milton — and their store — has turned into a destination for many people, Latham said, because they want to experience small-town charm.

They were destined to be there, she added, and the entire experience has been “serendipitous.”

“Milton is the place to go,” Latham said. “Milton is the place to be, and I think we have been saying that for the last few years and now it’s happening.”

In recent years, Milton, much like the small town of Berlin, Maryland, has been awarded with many recognitions as community with charm.

One business that has been in Milton since 2002 and stuck with the town through the economic downturn is Dogfish Head.

The beer trailblazers have their main brewery and cannery in the town, but it is very important that they support not just the town of Milton but the entire coastal Delaware region, said Mark Carter, off-centered event planning and benevolencing director.

“We are growing, obviously Delaware is growing, the town of Milton is going, Sussex County beach life, the whole area, is growing, and we bring a lot of folks into the community, not just Milton but all the neighborhoods and towns we are connected to,” he said. “So we bring 100,000 visitors in a year, those visitors, hopefully, traffic, not just by vehicle but by foot as well, into Milton.”

Dogfish will encourage people to venture into Milton to experience the town and see the historical society and possibly catch a play at the Milton theater. (Milton Mayor Kanakos said they have over 300 productions per year there.)

Dogfish Head also sponsor nonprofits such as the Milton Theater or Milton Community Foundation to make the town in which they are located more beautiful and more attractive to visitors.

“One of the things, I think, from day one Dogfish Head has always been about not just ‘Hey, we’re Dogfish, and we make beer,’ ” Carter said. “It’s ‘Hey, we’re Dogfish, and we are proud to be in coastal Delaware.’ “

Having a strong town council and a strong town manager that are actively invested in the town has helped tremendously, Kanakos said.

The people on the town council are at the top of their professions, he added, ensuring only the best of the best will be there helping out Milton.

Kristy Rogers, who became the town manager in early 2017, has also been an excellent asset to the town, Kanakos said, because of her ability to negotiate contracts with other agencies that will benefit the town.

Their representatives in the Delaware General Assembly, Sen. Ernie Lopez and Rep. Steve Smyk, also help the town out, ensuring their needs are met by the General Assembly to ensure they are competitive with other towns, Kanakos said.

Above all, though, since taking over as mayor two years ago, Kanakos is just happy with the way his town has grown and the responses to it.

“This is the leading edge,” he said. “Just a little town like this.”

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Agribusiness from Europe Establishes U.S. Headquarters in Delaware

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Agribusiness from Europe Establishes U.S. Headquarters in Delaware

16 JULY, 2018

When it came time for Belchim Crop Protection to decide on the home for its United States headquarters, the European company looked at the Research Triangle in North Carolina. It looked in Kansas City and it looked in Dallas.

So, naturally the agribusiness has set up HQ in a business park on Centerville Road where Prices Corner meets Greenville.

Now, the company with a growing portfolio of insecticides, herbicides, fungicides and other biological products is poised to take a larger market share in the U.S.

Last year, Belchim, which reported $600 million in sales in 2017, acquired Prescott, Arizona-based Engage Agro USA, laying the groundwork for major U.S. expansion.

The U.S. arm of Belchim plans $50 million in growth over the next three years. U.S. general manager Tom Wood said the growth will be aimed at expanding from niche fruit and vegetable crops into large row crops like corn.

Most of Belchim’s U.S. customers are on the west coast. The expansion into row crops will open up east coast markets like Delaware, where corn and soy crops are aplenty. Wood said Belchim is going to bring a unique herbicide to the U.S. market that is not there today.

Setting up in Delaware, of course, puts Belchim in the backyard of DuPont, which will live in on Delaware with its Corteva Acgriscience spinoff. Chemical giant FMC also makes Philadelphia its home. Belchim and FMC worked together in 2013, when Belchim granted FMC exclusive rights to develop, register, manufacture and sell Belchim’s proprietary fungicide valifenalate, in North America, Latin America and elsewhere.

Belchim later bought back FMC’s stake in the company after FMC acquired Cheminova.

“It’s a David and Goliath story,” Wood said. “We’re up against giants.

“Our strategy is not to go head-to-head with the basics like Corteva and not to go head-to-head in national distribution… Our strategy is to provide something for those types of companies from a life cycle management perspective. We fill the gaps particularly on weeds that escape their products.

“So it’s something they can add to their portfolio that is cost effective for them, for the grower and allows us to participate in market and take a market share without threatening the giants in any way.”

Belchim currently has just 12 employees in the U.S., up from seven at the beginning of the year. Some of those are out in the field working in regional sales positions across the country.

Four employees work full-time out of Delaware. Wood, a Chester native, said Belchim could have around a dozen or so employees in Delaware in two years.

“We will bring a unique herbicide to the U.S. market that is not there today,” he said. “So it will be a new innovation that the growers will appreciate. They’re already using it in mint crops as an emergency use approved by the EPA. It just gets the really tough weeds that no one else can get and it works well with every major herbicide out in the market.

“A lot of companies will enter the United States and come in with a, ‘Me, too.’ We will have something new that hasn’t been seen in the United States for years or they’ve never seen before.

“Once people start seeing our portfolio, they invite us back.”

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Feds Say no Further Review Necessary for Port of Wilmington Takeover by Emirati Company

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Feds say no further review necessary for Port of Wilmington takeover by Emirati company

28 JUNE, 2018

The terms of the pending 50-year deal would see the state continue to own the land under the nearly 100-year-old Wilmington port while Gulftainer would take over operations of the facility, which sits at the confluence of the Christina and Delaware rivers. The federal sign-off means the final terms must now be ratified by the Diamond State Port Corp., the port’s quasi-public operating board. 

BACKGROUND

General Assembly endorses port privatization plan

Gulftainer chief promises jobs as board gives blessing to port privatization effort

“This is a significant step forward in finalizing our agreement with Gulftainer, which will protect and create good-paying, blue collar jobs at one of Delaware’s most important employment centers,” Carney said in a written statement. 

State officials say the deal could double the 5,700 port and maritime-related jobs in Delaware.

The General Assembly signed off on the deal earlier this year, leaving the Committee on Foreign Investment in the United States (CFIUS) as the only approval outside the port necessary, officials said. 

 

That committee is tasked with reviewing transactions that could result in control of a U.S. business by a foreign person in order to determine the effect of such transactions on national security. The panel is comprised of military, homeland security, federal law enforcement officials and others. 

Wilmington would be Gulftainer’s second U.S. port. The company, based in the United Arab Emirates, opened a container facility in Canaveral, Florida, in 2015. The company has ports in the UAE, Lebanon, Iraq, Saudi Arabia and Brazil and is a subsidiary of the Crescent Enterprises, a privately held UAE conglomerate. 

Earlier this week, Thomas P. Feddo, deputy assistant secretary of Investment Security for the Department of Treasury informed an attorney representing the state that the deal is not covered under the Defense Protection Act. That act gives the president authority to review certain transactions involving foreign entities. 

 

Secretary of State Jeffrey Bullock said having the dozens or so federal agencies review the deal and declare no further review is necessary is the “best response we could have received” and clears the way for finalization of the deal. 

The board already signed off on the basic terms of the agreement earlier this year. 

Gulftrainer CEO Peter Richards has said Gulftainer plans to pour $73 million into the existing port through the next decade to modernize operations. 

 

The deal also calls for the development of a new container facility on state-owned land that was home to DuPont Co.’s Edge Moor chemical production facility to be finished by the first of 2024. Richards called it a $400 million investment. The state bought the 114-acre property from Chemours for $10 million in 2016.  

This article was originally posted on the Delaware News Joural at: https://www.delawareonline.com/story/news/2018/06/28/feds-sign-off-port-wilmington-takeover/739984002/

 

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Uber for Packages: Delaware’s DeliveryCircle will Remain in State

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Uber for packages: Delaware’s DeliveryCircle will remain in state

20 JUNE, 2018

When it came time to search for funding, Delaware-based DeliveryCircle faced a dilemma: Let investors on the West Coast move their operation across the country or find money that would enable the delivery service company to stay where it’s rooted.

“I personally always wanted to stay in Delaware,” said CEO and founder Vijaya Rao. “I had been pushing back.”

DeliveryCircle works in a similar way as tech transportation companies such as Uber and Lyft, except it deals in packages instead of people. Drivers on the platform run the gamut from professional couriers, stay-at-home moms, seniors and part-time contractors.

The business that launched in February 2014 got the best of both worlds when it came to new financing. DeliveryCircle announced last week it had raised a “significant minority investment” from financial and strategic supply chain investors, led by Cambridge Capital, NFI and other strategic investors.

Now based at the Christiana Corporate Center after graduating from the incubator at New Castle County’s Emerging Enterprise Center, DeliveryCircle will continue its rapid expansion in the ever-growing delivery service space.

Rao said the strategic partnership is “not just somebody giving us a checkbook.” The supply chain investors, she said, will better position DeliveryCircle to continue to grow as “last mile delivery” from businesses to consumers becomes more critical, especially in same-day service, which DeliveryCircle now provides in 19 states and more than 5,000 zip codes.

For perspective, the startup opened service with five drivers and 20 zip codes. There are now more than 900 drivers – all are contractors – on the platform, Rao said.

The company has just eight employees but some funding will go toward hiring back office management and finance positions in Delaware, Rao said.

Staying in Delaware was more than just staying where the company has been rooted. The space between New York and D.C. has proved to be a good location so far.

“We have kind of saturated that belt,” Rao said. “Of course, there is still room to grow. For us it makes sense.”

The company has national aspirations, though.

Rao said the company has grown 300 percent year-over-year during the last three years.

DeliveryCircle’s software and mobile application enable clients to match package sizes with a pool of professional, safe drivers and a variety of vehicle types.

“It’s no longer a hypothesis of a model,” Rao said. “It’s very much a working model.”

Originally, Rao said DeliveryCircle focused on being a business-to-business company. But as activity in the retail space increased, the demand to adapt into a business-to-consumer model increased.

On its website, DeliveryCircle says it works with brands such as Zoe’s Kitchen, Honeybaked Ham, Philly Foodworks and other food companies. Rao said DeliveryCircle also has contracts signed with larger brands and retailers for delivery services.

Most of the small companies DeliveryCircle works with come from referrals, Rao said. The company has not spent any money on marketing.

Rao said money from last week’s Series A funding announcement will go to hiring more full-time employees, business development and the continued geographical growth.

Moving west, it appears, was inevitable anyway.

Contact reporter Jeff Neiburg at (302) 983-6772, jneiburg@delawareonline.com or on Twitter @Jeff_Neiburg.

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Kenny Family Shoprites Eye Dover Market

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Kenny family Shoprites eye Dover market

20 JUNE, 2018

The CEO of a group of a group of northern Delaware Shoprite stores says the company is eying locations in Dover.

“We are currently negotiating with Brixmor the owners of the closed Acme site and also with three other potential sites owners in Dover. Hopefully one of these potential four sites will come to a final lease agreement,” says Chris Kenny, president of Delaware Supermarkets.

The Dover market opened up with the closing of the Acme Market store in north Dover. Acme – a part of Albertson’s which also owns Safeway – has been closing low-performing stores as it copes with competition, employee culture and other issues. The company still operates a Safeway store in Dover.

At present, the top two players in the Central Delaware market are Redner’s and the Walmart Supercenter. Reading, PA-based Redner’s also operates smaller store formats, some with gas stations. Other chains have departed the Dover area over the years with no grocer gaining a dominant market share.

Delaware Supermarkets, owned by the Kenny family, grew steadily after opening its original store in the Stanton area in the mid-‘90s. Its stores typically feature larger square footages than other non-Walmart competitors.

The Shoprite operator ’s growth accelerated with the opening several years ago with a non-traditional location on the edge of the Wilmington Riverfront and by acquiring and expanding former Pathmark and Safeway locations on each end of the sprawling Bear-Glasgow area south of Newark.

Shoprite itself is also on a growth track, picking up market share when the A&P chain folded. This occurred even though rival Acme acquired former A&P Pathmarks in northern Delaware and elsewhere.

Other Shoprites are in the Brookside area of Newark and in north Wilmington.

A Christiana River bridge that will link the area around the Shoprite to the nearly fully redeveloped area of the Riverfront is now under construction.

The Wilmington store is part of this riverfront area that will become the home of the 76ers Fieldhouse and the NBA G League affiliate, the Bluecoats. In the works are apartments and other developments in the area.

In northern Delaware, Shoprite is battling with Acme-Safeway for market share with the Philadelphia mainstay acquiring two former Pathmark locations in Milltown and Newark.

Other opportunities could crop up in the future for Shoprite.

Albertson’s currently has Safeway and Acme locations that are in close proximity to one another in north Wilmington and Bear-Glasgow. That has led to speculation that other closings are in the cards. For example, Safeway and Acme locations in north Wilmington are within a stone’s throw of one-another along Naamans Road.

Delaware Supermarkets, meanwhile, has worked to maintain a local touch by highlighting Delmarva produce and food products from local companies. The company is also active in the community through a family foundation.

Shoprite is a northern New Jersey-based cooperative that supplies markets owned by the Kenny family and other operators. Shoprite is now the largest supermarket chain in a region that includes the Delaware Valley, according to Food Trade News.

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DowDuPont’s $200 Million Investment in Delaware

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DowDuPont’s $200 Million Investment in Delaware

13 JUNE, 2018

DowDuPont officials and Delaware politicians are beaming about scores of newly designed laboratories housed within an Experimental Station building that received a $200 million facelift during the past year.

Gov. John Carney said the investment demonstrates that DuPont will continue to drive Delaware’s economy, even after it spins off from the DowDuPont holding company in June of 2019.

DowDuPont to move up to 150 jobs to the Experimental Station, near Wilmington

“Now, DuPont is obviously going to have a smaller footprint in terms of employees in our state than it did when I was growing up,” he said, “but when you talk about what drives the economy; it’s research, development, science, and technology.”

Before a ribbon-cutting event on Friday, Carney was among state politicians given a tour of the renovated building, which featured oxygen-free chambers to study gut bacteria and high-tech sequencers to analyze microbial data.

The building is the new headquarters of DowDuPont’s consolidated Industrial Biosciences division — a business that specializes in creating enzymes for a variety of products.

DowDuPont’s renovated Industrial Biosciences headquarters at the Experimental Station could be a signal of future investment in the state by the venerable company. (Photo: Courtesy of DowDupont)

The organic catalysts allow laundry detergent to function in cold water. They keep bread from going stale. And, they can create healthy bacteria in the stomachs of chickens.

They also bring in $2.1 billion annually for DowDuPont.

DowDuPont profit hits $1.1 billion on higher demand and increased prices Company officials say the new facility will give the firm an edge against competitors in a race to recruit top talent.

“Our job is to attract the best and brightest scientists in the world,” DuPont facilities director Chris Koelsch said. “So that’s what we’re doing.”

Today, the Experimental Station, which has been the center of the DuPont’s research and development for generations, has 2,000 employees. The number includes 400 people who work for companies that rent space at the property.

DowDuPont’s renovated Industrial Biosciences headquarters at the Experimental Station. (Photo: Courtesy of DowDupont)

By 2020, the facility will house 2,600 people, an increase that will include transfers coming from a former-Dow Chemical facility in Collegeville, Pennsylvania.

“There will be some growth, some of which is coming in from out of state, and some of which is new hires,” said Marc Doyle, chief operating officer for the company’s Specialty Products Division. “We’re having to add some roles to meet the demands both from growth from the economy as well as establishing the standalone company.”

The $200 million spending on the renovated building also is significant for the company because it is a shift from a decade of turmoil for DuPont.

Past years were marked by layoffs of thousands of long-term employees, a vicious proxy battle with activist investors, and the shedding of non-core assets, such as the Hotel DuPont and the DuPont Country Club.

In those recent years, Koelsch said, DuPont failed to sufficiently fund all of its needed infrastructure. That is changing, he said.

“There was some under-capitalization in years past,” he said. “We got a $200 million investment to start the journey here on a transformation.”

Though DowDuPont is investing in state-of-the-art research facilities, its CEO Ed Breen last month said the company has decided to avoid large research and development projects. Those “moonshots,” Breen said, cost the most money and take multiple years of research.

“When I got to the company, we killed almost all of what I call the moonshot projects,” said Breen while speaking at the Bernstein Strategic Decisions Conference in May.

Breen replaced Ellen Kullman as CEO in 2015, following a battle with investor Nelson Peltz, which was largely over the size of the venerable company’s significant investments in R&D.

One project Breen cited as too large and too risky was the company’s $225 million endeavor to produce ethanol from corn stalks. DuPont in 2017 put up for sale the project’s center of operations in Iowa.

Breen submitted a plan to the company’s board in early May, which laid out its leaner R&D efforts.

“Most of our projects now are $10, $20, $30 million,” he said. “They’re safe. It’s hard to blow those. It’s easy to track them. They’re just less risky.”

DuPont facilities director Chris Koelsch on Friday describes multiple renovations planned for the DuPont

DowDuPont formed last August after a $150 billion merger between Delaware-based DuPont and Michigan’s Dow Chemicals. In May, the company reported net sales for the first quarter of 2018 at just over $21.5 billion, up 5 percent from the two companies operations a year earlier.

By 2019, three companies will be formed from the merged entity. First to leave will be the company’s Material Sciences Division around April of next year. It will be headquartered in Michigan.

The Specialty Products and Agriculture divisions, both of which will be based in Delaware, will separate shortly thereafter.

Specialty Products will be given the name DuPont, while agriculture will be called Corteva Agriscience.

Prior to the split, Materials and Agriculture each is shedding over $1 billion in costs, with Specialty’s expected savings to come in just under $1 billion.

The company has not revealed who might lead the new companies. Doyle, who is the head of Specialty Products, declined to say if he will become CEO of the new DuPont.

“We’ll see. I’m just focused on trying to get the company set up for success,” he said.

Asked about which companies will take on DuPont’s billions of dollars in pension liabilities, Doyle said, “We’re working on it.”

“It’s a really important subject and we’ll have more to say later this year,” he said.

Contact Karl Baker at kbaker@delawareonline.com or (302) 324-2329. Follow him on Twitter @kbaker6.

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DPP Announces Appointment of President & CEO

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DPP Announces Appointment of President & CEO

1 MARCH, 2018

Following a national search, the Board of Directors of the Delaware Prosperity Partnership (DPP) has selected William Kurt Foreman to lead the organization as President and CEO. He will report to DPP’s Board.

Mr. Foreman currently leads the 16-person economic development team of the Greater Oklahoma City Chamber, one of the nation’s largest Chambers of Commerce. The organization serves a 10-county area, with a population of nearly 1.5 million. Prior to his present position, Mr. Foreman served as CEO of the North Louisiana Economic Partnership. Originally from the northeast, Mr. Foreman has held senior economic development positions in Pittsburgh and the Washington, D.C. area.

Mr. Foreman will begin work in Delaware in April. He will initially focus on building the organization and implementing the DPP strategic plan to enhance Delaware’s economy. “We remain focused every day on making sure that Delaware’s economy is competitive, and that all Delawareans have access to good, high-quality jobs,” said Governor John Carney, co-chair of DPP. “That’s why we have partnered with the private sector through the Delaware Prosperity Partnership to bring additional resources to our economic development efforts. The bottom line is this: Delaware remains a great location for businesses to put down roots, grow, and create jobs. Kurt has the knowledge and experience necessary to tell our story and help us attract business and jobs to Delaware. We’re thrilled he has accepted this new role, and I look forward to our work together.”

The DPP was established in 2017 as a 501(c)(3) organization to lead the state’s economic development efforts. A partnership between state government and the private sector, the DPP will have a budget of approximately $3.4 million annually, with 38 private sector investors, and will draw upon both state resources and the expertise of many of Delaware’s business leaders. “Kurt has put successful teams together, is highly respected and well known in the field and can hit the ground running,” said Rod Ward, co-chair of DPP, and President and CEO of CSC.

“I’ve been impressed with what I’ve learned during the search process. The state has a great deal to offer companies, both those that start here and others that will choose to locate and grow here going forward. It was the contagious optimism and clear commitment of DPP’s leadership and board that truly sold me on wanting to join the DPP at this important juncture,” said Foreman. “I look forward to returning to the Mid-Atlantic where my family roots are and where I got my start in economic development. My wife and I are excited to get to know the various areas of the state and become active members of the community. I am honored to have this chance to work with both the board and many current and future partners to build something that can make a long-term difference for the citizens of Delaware.”

Mr. Foreman is a graduate of Franklin & Marshall College and holds an MBA from Wake Forest University. He is active in several economic development professional organizations including the International Economic Development Council.

“Given the role of the DPP and its importance to the State, it was critical that we conducted a national search in order to find the best person for the job. We knew that traditional economic development experience would be important, but the ability to expand Delaware entrepreneurship and innovation opportunities was also an important factor. We had a very talented diverse pool of applicants to consider and Kurt was the unanimous choice of the committee. We are thrilled to have him join us as we set a new course for our State”, said Doneene Damon, member of the DPP Search Committee and Director, EVP of Richards, Layton and Finger.

Mr. Foreman was recognized in 2017 as one of North America’s Top 50 Economic Development Leaders by Consultants Connect. “I can’t imagine anyone more qualified than Kurt. He would certainly rank in the top 10% of economic development professionals in the country,” said William N. Hearn, Senior Vice President, CBRE Advisory and Transaction Services of Atlanta, GA.

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Adesis Grows Business and Expands its Fundamental Chemistry Capabilities in Delaware

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Adesis Grows Business and Expands its Fundamental Chemistry Capabilities in Delaware

Partnering with Delaware Innovation Space, Inc.

11 DECEMBER, 2017

New Castle, Delaware – 

Adesis, Inc., a wholly-owned subsidiary of Universal Display Corporation (Nasdaq: OLED), today announced that it will open a new suite of state-of-the-art laboratories in Delaware and expand its organic chemistry team and R&D programs. This additional footprint is expected to help drive growth opportunities in areas including next-generation OLED (organic light emitting diode) emitter and host materials and meet the growing demand for the Company’s custom organic synthesis, research & development, and specialty manufacturing services. Adesis also announced that it became a sponsor of Delaware Innovation Space (DISI) and joined its entrepreneurial innovation community. Working with DISI, Adesis signed an agreement for approximately 7,000 square feet of laboratory space at the Experimental Station in Wilmington, Delaware. The new suite of laboratories, which includes additional ancillary work and meeting space, is expected to augment Adesis’ on-going operations and recently-purchased 47,500 square feet headquarter building in New Castle.

“Delaware is home to a number of great chemical and manufacturing companies like Adesis, who are committed to making a world-class product with a great local workforce,” said U.S. Senator Christopher Coons (D-Del.). “I am delighted to see Adesis and their parent company UDC grow in Delaware as they expand their market reach and product offerings to more users around the world.”

“We are pleased to announce our expanding footprint and increased investment to further boost research, innovation and job opportunities in Delaware,” said Andrew Cottone, President of Adesis, Inc. “As a leading organic synthesis CRO (contract research organization), we are adding to and extending our discovery services and process development capacity for customers across the pharmaceutical, chemical, biomaterials, and catalysts industries. We are enhancing our productivity and effectiveness by streamlining the technology transfer and optimizing the workflow from basic research to specialty manufacturing. Furthermore, by co- locating in our New Castle headquarters and the Experimental Station, we believe that we are building a world-class technology and manufacturing hub to support our customers from innovation to commercialization.”

“Adesis continues to invest in Delaware, and we are thrilled that the company will bring its long track record of innovation to the Delaware Innovation Space,” said Governor John Carney. “We partnered with DuPont and the University of Delaware to create the Innovation Space to foster growth of early-stage scientific- based companies, and encourage collaboration among Delaware’s most talented innovators. The addition of Adesis will support that mission, and we’re thankful for the company’s continued partnership.”

This recent expansion by Adesis was rapidly enabled by the seamless cooperation of the Delaware government and business leaders who have fostered a robust scientific ecosystem.

“The Delaware Innovation Space is pleased to be able to support the growing needs of Adesis and accelerate its business forward right here in Delaware,” said Bill Provine, CEO of the Delaware Innovation Space. “Adesis will be a great new member of our science-based innovation community, and we look forward to working with them to further capitalize on the strengths of our new entrepreneurial ecosystem.”

Adesis has also been assisted by the newly formed Delaware Prosperity Partnership (DPP). The DPP was recently created by Delaware as a public/private partnership to accelerate economic development efforts.

“It has been a pleasure working with Andrew Cottone and Adesis to help facilitate their Delaware expansion, both in New Castle and at the Delaware Innovation Space,” said John Riley, Interim CEO of the DPP. “This would have been difficult to accomplish had the State, DuPont, and the University of Delaware not set the foundation for success with the formation of the Delaware Innovation Space earlier this year.”

About Adesis, Inc.

As a wholly-owned subsidiary of Universal Display Corporation, Adesis, Inc. is a contract research organization (CRO) supporting the pharma, biotech, catalysis and a number of other industries. The CRO specializes in organic and organometallic synthesis, in milligrams to multi-kilogram quantities. Adesis has a business model of providing clients with organic chemistry services in three areas: early stage research, scale up and development, and specialty manufacturing. With over 20 years of success and approximately 60 chemists with extensive industry and professional experience, Adesis supports companies in various industries with small molecule organic chemistry expertise. Adesis provides a range of services that can supplement research and development efforts. It can also act as a specialty manufacturer to reinforce supply chains. To learn more about Adesis, please visit http://adesisinc.com/.

About Universal Display Corporation

Universal Display Corporation (Nasdaq: OLED) is a leader in developing and delivering state-of-the-art, organic light emitting diode (OLED) technologies, materials and services to the display and lighting industries. To learn more about Universal Display Corporation, please visit http://www.oled.com.

About Delaware Innovation Space, Inc.

As home to one of the nation’s first and most successful entrepreneurial ventures founded by Eleuthére Irenée du Pont in 1802, Delaware’s legacy of transformational scientific innovation continues with the establishment of the Delaware Innovation Space, Inc. in 2017. The organization is a vital resource in the scientific startup ecosystem and is a non-profit, public-private partnership that offers multi-dimensional, resource-rich support for scientific entrepreneurs at the Experimental Station campus in Wilmington, Delaware. Delaware Innovation Space offers a centric location and proximity to world-renowned research institutions, global multi-national corporations and a thriving scientific innovation community. More information is available at https://deinnovates.org.

About Delaware Prosperity Partnership

The Delaware Prosperity Partnership (DPP) was formed in 2017 as a private entity to lead the state of Delaware’s economic development efforts. Establishment of this private entity was a critical step to enhance the state’s ability to attract, grow and retain companies; to build a stronger entrepreneurial and innovation ecosystem; and to support private employers in identifying, recruiting and developing talent.

This initiative brings together the resources, commitment, and energy of both public and private sectors and is charged with certain tasks related to economic development. As Delaware faces a more competitive environment and intense global competition for businesses, the DPP will provide the strategic direction for the state’s economic development activity by tapping private sector expertise and resources to work in conjunction with the state.

All statements in this document that are not historical, such as those relating to the Company’s technologies and potential applications of those technologies, the Company’s expected results and future declaration of dividends, as well as the growth of the OLED and CRO market and the Company’s opportunities in that market, are forward-looking financial statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward- looking statements in this document, as they reflect the Company’s current views with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated. These risks and uncertainties are discussed in greater detail in Universal Display Corporation’s periodic reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, including, in particular, the section entitled “Risk Factors” in Universal Display Corporation’s annual report on Form 10-K for the year ended December 31, 2016. Universal Display Corporation disclaims any obligation to update any forward-looking statement contained in this document.

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Governor Carney Announces Appointments to Board of the Delaware Prosperity Partnership

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Governor Carney Announces Appointments to Board of the Delaware Prosperity Partnership

Public-private partnership will lead economic development, business marketing and recruitment for Delaware

21 SEPTEMBER, 2017

WILMINGTON, Del. – 

Governor John Carney on Thursday announced appointments to the board of the Delaware Prosperity Partnership – the public-private partnership that will lead Delaware’s economic development efforts, and business marketing and recruitment for the state. Board members represent a cross-section of Delaware’s economy – with representatives from Delaware’s financial industry, leading corporations, the nonprofit sector, higher education, and the legal community.

Governor Carney will co-chair the partnership’s board alongside Rod Ward, President of CSC.

“Collectively, this group of leaders from across our state will ensure that Delaware is positioned to create good-paying jobs, to attract talent, and to lead in a 21st century economy,” said Governor Carney. “As co-chair, I will remain closely involved in the direction of the partnership, and Delaware’s economic development efforts. And we will focus on promoting innovation, attracting technology-focused jobs to Delaware, connecting entrepreneurs with available resources, and building a talented workforce. Thank you to Rod Ward for agreeing to co-chair this group, and to all of those who have agreed to serve.”

“We are extremely pleased with the Governors foresight and leadership in establishing a public private partnership to expand economic development here in Delaware,” said Ward. “Increasing business community involvement and support was one of the major recommendations of the Delaware Business Roundtable’s Delaware Growth Agenda. The board appointed by the Governor for the Delaware Prosperity Partnership is ready to roll up its sleeves and work to attract new business and entrepreneurs into our state.”

Governor Carney, who took office in January, has made it a top priority to restructure Delaware’s economic development efforts, and strategically partnering with the private sector on economic growth was a key recommendation of the Governor’s Action Plan for Delaware. Last month, Governor Carney signed House Bill 226, creating the Delaware Prosperity Partnership and a new division within the Department of State to support small business growth.

The Delaware Prosperity Partnership – which will be run day-to-day by a chief executive officer and a full-time staff – will lead business marketing efforts for the state, with a focus on attracting early-stage and technology-focused businesses, recruitment of large employers, and expansion of international business opportunities for Delaware companies. Its leaders also will work with employers and Delaware educators to fill key talent gaps in the state. The state will jointly fund the partnership’s operations with private business.

Partnership board members include:

  • Governor John Carney (co-chair)
  • Rod Ward, President, CSC (co-chair)
  • Desmond Baker, Founder, Desmond A. Baker & Associates
  • Alan Brangman, Executive Vice President, University of Delaware
  • Patrick Callahan, Founder, Compass Red
  • Eric Cheek, Associate Vice President, Delaware State University
  • Doneene Damon, Executive Vice President, Richards, Layton & Finger
  • Jeanmarie Desmond, co-Controller, DowDuPont
  • Robert Herrera, co-Founder, The Mill
  • Nick Lambrow, President of Delaware Region, M&T Bank
  • Senator Greg Lavelle, Delaware State Senate
  • Greg Moore, Vice President, Becker Morgan Group
  • Lori Palmer, Ventures Executive Leader, Trellist Marketing Technology
  • Rob Rider, CEO, O.A. Newton
  • Representative Bryon Short, Delaware House of Representatives
  • Richelle Vible, Executive Director, Catholic Charities
  • Senator Jack Walsh, Delaware State Senate
  • Representative Lyndon Yearick, Delaware House of Representatives

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Governor Carney Takes Steps to Restructure Delaware’s Economic Development Efforts, Create Jobs

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Option: 1

Governor Carney Takes Steps to Restructure Delaware’s Economic Development Efforts, Create Jobs

14 AUGUST, 2017

WILMINGTON, Del. – Governor John Carney on Monday held a signing ceremony for House Bill 226, a major piece of legislation that restructures Delaware’s economic development efforts, with a focus on supporting Delaware small businesses, innovators and entrepreneurs.

Governor Carney also signed incorporation paperwork creating the Delaware Prosperity Partnership – a public-private partnership that will leverage private sector resources to enhance business recruitment, promote entrepreneurship and innovation, support workforce development efforts, and produce forward looking-analyses on economic trends to best position Delaware’s economy to grow.

Governor Carney holds signed incorporation documents for the Delaware Prosperity Partnership.

Legislation restructuring Delaware’s economic development efforts, and authorizing creation of the partnership, was sponsored by Representative Bryon Short, Senator Jack Walsh, Senator Brian Pettyjohn, and Representative Lyndon Yearick.

Monday’s ceremony was held at the Delaware Innovation Space at the DuPont Experimental Station research campus in Alapocas.

“By restructuring our economic development efforts, we’re positioning Delaware to create good-paying jobs, build an entrepreneurial ecosystem, and ensure that Delaware remains a leading state to do business,” said Governor Carney. “We will partner with private business to draw on new resources, and ideas, for improving our economy. And we will offer new, targeted support for small businesses and entrepreneurs who are responsible for much of our economic growth and job creation. Thank you to members of the General Assembly and members of our Economic Development Working Group for their leadership on this important issue.”

On January 18 – his first full day in office – Governor Carney signed Executive Order #1 to create the Economic Development Working Group and explore a new economic development strategy. The Governor worked closely with members of the General Assembly to approve the concept and funding for the public-private entity, as well as a new division at the Department of State to oversee responsibilities for small business development and tourism.

Governor Carney’s plan to fundamentally restructure Delaware’s economic development efforts includes two significant elements:

  • Creation of the Delaware Prosperity Partnership to partner with private business to improve how Delaware attracts new business and job growth, and;
  • Creation of a new Division of Small Business, Development, and Tourism within state government to offer targeted support for small business owners, entrepreneurs, and minority-owned businesses.

Governor Carney will co-chair the board of the Delaware Prosperity Partnership. The partnership – which will be run day-to-day by a chief executive officer and a full-time staff – will lead business marketing efforts for the state, with a focus on attracting early-stage and technology-focused businesses, recruitment of large employers, and expansion of international business opportunities for Delaware companies. Its leaders also will work with employers and Delaware educators to fill key talent gaps in the state, and conduct forward-looking economic analyses to inform its work. The state will jointly fund the partnership’s operations with private business.

Delaware’s new Division of Small Business, Development, and Tourism will provide guidance to small business owners on how to navigate local, state and federal laws and regulations. The division will help small businesses identify resources such as local incubator programs, financing, and networking events. It also will improve the state’s outreach to women and minority entrepreneurs, and veteran-owned businesses. And division leaders will oversee Delaware’s taxpayer-funded incentive programs for job creation.

Restructuring the state’s economic development efforts, and partnering strategically with the private sector, was a recommendation of Governor Carney’s Action Plan For Delaware, and of the Economic Development Working Group, a panel chaired by Dr. Mark Brainard, President of Delaware Technical Community College, and Rod Ward, President and CEO of CSC.

Reaction to Governor Carney’s signing on Monday:

“This legislation is forward-thinking and recognizes the changes that need to take place to foster economic development in our state,” said Representative Bryon Short, D-Brandywine Hundred. “I am encouraged by the focus on innovation and entrepreneurship with the new partnerships under this office and look forward to see new opportunities in Delaware going forward.”

“It’s more clear than ever that we need to adapt to a changing economy,” said Senator Jack Walsh, D-Stanton. “That means attracting new businesses, helping startups and small businesses flourish, and supporting the best-in-class workforce that made us the world’s leading economy in the first place. This will give Delaware a faster, more nimble and responsive means of interacting with potential clients. In each case, the public and private sectors need to collaborate to keep us ahead of the ball. The public-private partnership is a win-win that will make our economy more dynamic, lead to better public policy, and equip our workforce with the skills that the new economy demands.”

“Speaking as a former business owner, and as someone who is presently employed in the private sector, I am very enthusiastic about this initiative,” said Representative Lyndon Yearick, R-Dover South. “Bringing experienced business people directly into the process of fostering entrepreneurship is both pragmatic and promising.”

“It has been an honor to work with Rod and so many leaders throughout our state to deliver on the Governor’s first priority – creating an economic development model that will position our state to meet the challenges that lie ahead,” said Dr. Mark Brainard, President of Delaware Technical Community College. “Governor Carney’s vision, combined with his leadership in getting this legislation passed, lays the foundation for continued success in keeping, adding and creating new jobs in the future.”

“The creation of the Delaware Prosperity Partnership is a landmark achievement in the future economic development efforts for the state,” said Terry Murphy, Chairman of the Delaware Business Roundtable and President of Bayhealth. “For the first time, Delaware government, employers and academia are formally cooperating to create a culture of growth and entrepreneurship as we work to expand the state’s economy by attracting jobs, talent and capital investment.”

“Catalyzing innovation and entrepreneurship is critical to our economic success as a state and as a community,” said Bill Provine, President and CEO of the Delaware Innovation Space, who hosted Monday’s ceremony. “The strength of public-private partnerships such as the Delaware Prosperity Partnership and the Delaware Innovation Space enable us to focus and channel our energy together to achieve the best results for all of Delaware.”

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Governor Carney Announces Strategic Plan to Restructure Delaware’s Economic Development Efforts

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Governor Carney Announces Strategic Plan to Restructure Delaware’s Economic Development Efforts

Plan will create new public-private entity and new economic development division at the Department of State

17 MAY, 2017

WILMINGTON, Del. – Governor John Carney announced a plan on Wednesday to create a public-private partnership and strategically realign Delaware’s economic development efforts, with a new focus on promoting innovation, supporting Delaware’s entrepreneurs, and leveraging private sector resources to create jobs and grow Delaware’s economy.

Governor Carney – who signed Executive Order #1 on his first full day in office to explore a new economic development strategy – will work closely with members of the General Assembly to approve the concept and funding for the public-private entity, as well as a new division at the Department of State to oversee responsibilities for small business development and tourism.

The plan will reorganize Delaware’s economic development efforts by early 2018.

“We can and should do more to promote innovation, support our entrepreneurs, build and retain a talented workforce in Delaware, and strategically partner with the private sector to grow the state’s economy,” said Governor Carney. “This plan will position Delaware to create good-paying jobs, build an entrepreneurial ecosystem, and keep our state a competitive place to do business.”

Governor Carney’s plan calls for the creation of the Delaware Prosperity Partnership – a jointly funded public-private entity that will lead statewide business marketing efforts to recruit and retain businesses, including early-stage technology-based ventures, as well as large employers. The partnership also would provide support for startup businesses, with a focus on high-growth industries, and work closely with employers and education institutions to build and retain a talented workforce in Delaware.

Governor Carney’s plan calls for $2 million in annual state funding for the partnership, and $1 million in annual funding from private business. Contributions from the state would remain contingent on an ongoing, annual financial commitment from the private sector.

The Delaware Prosperity Partnership would be led by a Chief Executive Officer and governed by a 15-member board with members from the public and private sectors.

Governor Carney’s plan also would eliminate the Delaware Economic Development Office (DEDO), and shift responsibilities for small business development and tourism to a new division at the Department of State.

“This is about positioning Delaware to be competitive for good jobs moving forward,” said Jeff Bullock, Delaware’s Secretary of State. “By strategically partnering with the private sector, we can leverage business resources to strengthen the state’s economic development efforts, while continuing to support small business owners and promote our state’s $3 billion tourism industry.”

The new division at the Department of State will maintain a strong focus on supporting small business – especially women, minority, and veteran-owned businesses. It will help business owners identify available resources and navigate local, state and federal rules and regulations.

Division leaders also will administer Delaware’s publicly-funded economic development incentive programs, such as the Strategic Fund, the Main Streets program, and the Blue Collar Workforce Training grant program.

Governor Carney’s plan builds on recommendations last month from the Economic Development Working Group, a committee created by Executive Order #1 to study a new economic development strategy. Exploring a new model for economic development that includes a public-private partnership, and an emphasis on innovation and entrepreneurship, also was a recommendation of the Action Plan for Delaware.

Reaction to Governor Carney’s Plan:

“Even with the strongest economy in this region, Delaware can do better,” said Senator Jack Walsh, D-Stanton, a member of the Economic Development Working Group. “Bringing leaders from the private sector to the table adds a valuable new perspective to our economic development strategy and will help make our economy more dynamic over time. At the same time, Delaware is maintaining its firm commitment to empowering women, minority, and veteran-owned small businesses. Not all public-private partnerships are created equal, but the balance that we’ve struck here not only protects existing businesses and jobs, but also gives us a leg up in attracting promising new industries to our state.”

“There were two specific things I was looking for in considering this public-private partnership: One was there be a high level of transparency with the intermingling of public and private funds. I was concerned that it be as transparent as possible so the public would have every confidence that things were being done above board,” said Senator Brian Pettyjohn, R-Georgetown, a member of the Economic Development Working Group. “The second was to be sure this was not a New Castle County only solution for business development and that both Kent and Sussex Counties also had opportunities to reap the benefits of this new structure, proven to work very well in other states. I am satisfied both those conditions will be met.”

“This venture will put Delaware in a position to leverage the best that the public and private sectors have to offer to continue to strengthen and improve our economic climate,” said Representative Bryon Short, D-Highland Woods, a member of the Economic Development Working Group. “I look forward to working with this new partnership going forward.”

“This is not an end, it is a beginning,” said Representative Lyndon Yearick, R-Dover South, a member of the Economic Development Working Group. “Bringing the pragmatic knowledge of entrepreneurs into the process of creating a better business environment is a major step forward. Now we need to do realize the promise this concept holds for creating new, dynamic employment in Delaware.”

“We know that bringing additional, private-sector resources to Delaware’s economic development efforts can help strengthen our state’s ability to create jobs, grow the economy, and equip our workforce with the skills necessary to succeed in our new economy,” said Mark Brainard, President of Delaware Technical Community College, and co-chair of the Economic Development Working Group. “We are excited to support Governor Carney’s plan and look forward to making Delaware even more competitive moving forward.”

“This plan offers a real chance to dramatically re-think the way Delaware does business – by leveraging additional resources, and bringing more ideas to the table as we seek to grow our economy, attract talent to our state, and create good-paying jobs for all Delawareans,” said Rod Ward, President of Corporation Service Company, and co-chair of the Economic Development Working Group. “Private businesses are ready and willing to be a full partner in this effort, and help create the kind of entrepreneurial, innovation-based economy that will lead to real growth.”

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