Developer meeting with Peduto about bringing light maker's headquarters to Pittsburgh
A Washington County developer could partner with a Slovenian company to build an LED lighting plant in Pittsburgh.
Four officials with Millcraft Investments of Washington, including founder and Chairman Jack Piatt and President and Chief Operating Officer Lucas Piatt, met with Mayor Bill Peduto on Monday to talk about bringing Slovenia-based Grah Lighting to Western Pennsylvania.
The Piatts and company Chief Financial Officer Brian Walker are traveling to Slovenia next week to meet with Robert Grah and tour a plant.
“It's very, very preliminary at this point,” Lucas Piatt said.
Options include buying LED technology from Grah to manufacture the lighting. Neither Grah nor Jurcek Zmauc, Slovenia's consul general for Pennsylvania and nine other states, could be reached.
Peduto said the plant could be the headquarters for Grah's non-automotive LED light production for North, Central and South America. Pittsburgh is competing with Cleveland and Denver, Grah said during a November visit.
“I have to feel that with having a partner like Jack Piatt and the commitment of city government ... that we have to be at the front of the pack right now,” Peduto said.
The plant would employ up to 150 people initially and potentially produce longer-lasting, energy-efficient LED streetlights to replace the city's 37,000 traditional ones, officials said.
Peduto was unsure how much the jobs would pay but said city support would require wages be high enough “to support a family.”
Charlie Szoradi, chairman and CEO of the Delaware County-based Independence LED, said manufacturing facilities can generate a wide range of direct and indirect job opportunities, from lower-end assembly jobs to marketing, accounting and engineering positions.
“It can be like a pebble in a pond that creates a ripple effect,” Szoradi said.
Szoradi, whose business specializes in interior lighting, estimated a deal to replace the city's remaining traditional streetlights could be worth as much as $19 million for the company.
“That's enough reason to move,” Szoradi said of the company's potential decision to establish operations here. He cautioned, however, the city should “think twice about throwing money at an outsider ... because of the LED engineering, intellectual property and manufacturing know-how (that) already exists in Pennsylvania.”
Peduto said a local businessman with Slovenian ancestry introduced him to the company several years ago. He met with Robert Grah in Slovenia last year during a trip to Prague financed by the University of Pittsburgh. Grah subsequently came to Pittsburgh for a tour of potential factory sites, including the Crucible Building in the Strip District and the former LTV Steel Co. property in Hazelwood, both of which are being prepared for an estimated $1 billion in development.
Peduto said he has spoken with local venture capitalists about financing the plant, but none with the manufacturing background of Jack Piatt.
Piatt's company manufactured steel products mainly for the coal industries for 50 years before focusing on commercial real estate. He has strong connections to European industry, Peduto said.
Millcraft's Pittsburgh real estate holdings include Piatt Place, Market Square Place and River Vue apartments, all Downtown. The company is about to begin work on the Gardens at Market Square, a $103 million hotel, office and retail building Downtown. It also has holdings in Washington County.
Its political action committee, the Millcraft Committee for Effective State Government, donated $5,500 to the Peduto campaign last year. Peduto spokeswoman Sonya Toler said the contribution did not influence Monday's meeting.
“We think this LED lighting may be part of our future,” Jack Piatt said.
Bob Bauder and Tom Fontaine are staff writers for Trib Total Media. Reach Bauder at 412-765-2312 or bbauder@tribweb.com. Reach Fontaine at 412-320-7847 or tfontaine@tribweb.com.
