Alstom

Timeline in Chattanooga
1989

ABB buys Combustion Engineering property

1999

ABB merges with Alstom

2000

Alstom buys out ABB < than 12 months after merger

2002

THIS IS A BACKDATED NOTE:

Alstom is participating in payoffs and kickbacks to do business in multiple countries.

SOURCE: DOJ legal records and press releases. SEE NOTEBOOK & DOJ
website.
2003
to

Alstom in debt and requires cash infusion ($3.6-$7.1 billion) from French government
avoid bankruptcy. France takes stake in company.

2006

Alstom tells media it brought a team to Chattanooga to evaluate a new plant site.
Alstom already owns and runs the existing plant.

plant

2007 March 2--Alstom announces investment $200 million plant renovation & 350 new
jobs for Chattanooga plant to build steam turbines and generators. Alstom states it
brought a team to Chattanooga in 2006 to evaluate the site and decided the
Chattanooga transportation infrastructure suited their needs. Source: Site Selection
Magazine, March 2.
Comment: Alstom states existing plant currently employs 650 people. They probably
know these employment numbers, because they have owned and operated the
since 2000.

2008

June 17--[6 months after media announcement of remodel of Alstom plant]

Chattanooga City Council approves 3 phased PILOT Agreement awarding tax

abatements with 2026 expiration date. 100% abatement year one of each 3
phases & paying only school tax 29% for all subsequent years. PILOT
start time frame
for investments is backdated to a year earlier >July 5, 2007.

Comment: The City and County agreed to waive about $2 million in property taxes
per year for 15 years.
2010

January 8-ARRA Fed funds for $63 million awarded to ALSTOM

Alstom opened $300 million turbine production plant next to boiler facilityon
track to employ about 350 people by early 2013. Source: TFP article

2012

June 25--Gov. Haslam announces $2.3 million transportation grant to help fund
Riverwalk extension past Alstoms property
October 6-- Alstom states boiler production plant employs 400 employees. Source: TFP
Mike Pare Oct. 6 article.

2012

August--Sen. Bob Corker tours plant and states company spent $15 million to train
its workforce. [$15 million/ 300 new employees = $50,000/employee]
September-- Chattanooga City Council and Hamilton County Commission approve
construction funding for extension of Riverwalk past Alstom. According to Mayor
Littlefield, Riverwalk extension was an incentive promised to Alstom, although it is not
mentioned in the PILOT. City approved $1.075 million. COUNTY ALSO.
November 2--David Rothschild, Alstoms former vice president of global sales pleads
guilty to conspiracy to violate the US Foreign Corrupt Practices Act, a law
prohibiting persons in the US from bribing foreign officials for business purposes.

2013

[Year after Governor Haslam and Senator Corker announcements]

February 1--Alstom furloughs 350 boiler employees for a month

March 8--Alstom eliminates 80 Chattanooga jobs leaving 60 employees at the

turbomachinery plant. Tim Brown, Alstons communication director states boiler
plant

employs 400. Jobs at full site plant total 460.

Note: In the March 9, 2013 Mike Pare/Dave Flessner article, Ed Marston of the Cham
ber states the company will retain its tax abatement until 2014. The company

has until

then to meet its commitment to employ 300, and he noted that Alstom

overall will employ

460 people in the city. What did he mean by that? It should be noted that

when Alstom

announced the NEW plant renovation and new jobs in 2007, Alstom

admitted a total of

650 people were employed at the site.

650 existing old jobs + 300 new jobs should = 950 total jobs. 460 jobs are
fewer than before the PILOT began.
2013

March 25
According to turbomachinerymag.com, On March 14 Liquidators of Price Waterhouse
Coopers in Birmingham, UK, held the final disposition meeting in the case of insolvency
of Alstom Power Industrial Turbine Services. Several subsidiaries have been barred from
World Bank Projects for three years due to a track record of investigations and
convictions in bribery and corruption scandals worldwide. In spite of steady growth in
excess of 3% for the gas turbine industry as a whole, with growth up 10% in some
developing regions, Alstom seems to have hit a snag.

2013

July 29--Frederic Pierucci, Alstoms former vice president of global boiler sales pleads
guilty to bribery.

2014

December 22--US Department of Justice announced Alstom pleads guilty and

agrees to pay $772 million criminal penalty to resolve foreign bribery charges.
Issues leading to judgment: bribery, falsifying records, failing to implement proper
controls and failure to cooperate with investigation.

2014

Alstom announces furlough of 255 boiler workers.

2015

Alstom announces furlough of 100 boiler workers and will eliminate the jobs April though
August of 2015

March--Alstom sells 17 acre parcel to Talon Office Opportunties

September--City Industrial Development Board approves a revised property tax break for
Alstom to pay a portion of their taxes for 2015 because they only created 140? of the 300
jobs they committed to add in order to get the PILOT.
2016

June 21--New owner General Electric announces closure of Chattanooga Alstom plant,
layoff of 235 workers