CONCORD – Gov. John Lynch and the Executive Council on Wednesday approved a $4 million Business Finance Authority loan to complete a major economic development agreement between the State, Safran USA, and the City of Rochester.

The agreement will enable the construction of a previously announced 275,000 square-foot facility, in which Safran USA and Albany Engineered Composites (AEC) will be co-located. The facility will employ approximately 400 workers. The State, through the Department of Resources and Economic Development, worked with Albany, Safran USA and the City of Rochester to ensure an agreement could be reached.

“We have been working closely with Safran USA and Albany to see the project through to completion. Today’s news is a major economic development win for Rochester and the entire state of New Hampshire, and will result in the creation of hundreds of jobs,” Gov. Lynch said.

As part of the effort to recruit the new facility, the state has also partnered with Great Bay Community College to create a new composite manufacturing curriculum to train workers to fill the new jobs.

“Safran USA and Albany could have located their new facilities anywhere in the country, but they chose New Hampshire because they recognize that we have a strong workforce and a winning economic strategy. We worked intensely with the companies over the past several years to make the construction of this new plant, and the hundreds of jobs that come with it, a reality,” Gov. Lynch said.

“I want to thank (DRED) Commissioner George Bald and his staff, particularly state business recruiter Cindy Harrington, as well as New Hampshire’s Business Finance Authority, under the leadership for Jack Donovan, for getting us to where we are today.  I also want to thank Mayor T.J. Jean and Rochester city officials for their work and commitment to this project,” Gov. Lynch said.

“Finally, I want to thank Albany International’s President and CEO Joseph Morone and Safran USA leadership for their commitment to New Hampshire and for working cooperatively to move this critical project forward.”

“This agreement, and the manufacturing plant and new jobs that will result from it, is a reflection of not only the strength of the relationship between the State of New Hampshire, the City of Rochester, Albany International and Safran USA, but also of how tightly our futures are connected. The efforts of Governor John Lynch and his team in this process cannot be overstated, and the new plant and new jobs that will be created are the direct result of his efforts on behalf of State of New Hampshire,” said Albany President and CEO Joseph Morone.

The new facility will manufacture composite engine components.

“We are very pleased to launch the construction of a manufacturing plant in Rochester, where the Safran group and AEC will combine their resources in order to produce advanced composite parts for the LEAP aircraft engines developed by CFM International, a 50/50 joint company between Safran and GE,” said Peter Lengyel, President and CEO of Safran USA, Washington D.C. Operations.

Albany Engineered Composites is a subsidiary of Albany International, Corp., which employs about 225 workers at its existing Rochester facility. Last year, the company relocated its corporate headquarters from New York to Rochester.

“The City of Rochester is honored to be selected by Safran USA and Albany Engineered Composites to host their new world-class advanced manufacturing facility. This investment demonstrates Rochester’s commitment to attracting and securing sustainable industrial development and providing valuable jobs to our local economy,” said Rochester Mayor T.J. Jean. “Today’s announcement is a milestone for Rochester as we emerge from these difficult economic times.”

“This is a great day for Rochester and for the state of New Hampshire as a whole,” said Commissioner George Bald. “We thank Safran USA for making the decision to locate their facility in New Hampshire and commend the City of Rochester for its hard work in bringing in a quality company that will create new jobs and add to the economic vitality of our state.”

Construction of the new plant, near the existing Albany facility, will begin in the spring of 2012.