The employees of a Bellefonte area company are now its owners.
SilcoTek, based in the Benner Township, became employee-owned on Jan. 1 through the creation of an Employee Stock Ownership Plan, according to a release. The long-planned move will allow staff members to gradually earn shares in SilcoTek at no cost, and ensures that SilcoTek will remain independent.
“Our employees have always been the heart of SilcoTek,” Gary Barone, president and head coach, said. “We’ve always believed in building a company where people feel valued, respected, and empowered. Transitioning to an ESOP takes that belief one step further, by giving our employees a direct stake in the future they’re helping to create.”
It is the second company founded by Paul Silvis to become employee-owned, joining chromatography developer and manufacturer Restek, which is located nearby in Benner Township. SilcoTek spun off from Restek in 2009 and focuses on developing high-performance chemical vapor deposition coatings for industrial markets.
Silvis said the ESOP is about building a strong sense of community among employees and empowering them to create financial freedom.
“Many companies transition ownership from the founders by selling the company to outside investors. Rarely are the employees better off and frequently the business is relocated or shut down within 10 years,” Silvis said in a statement. “SilcoTek chose to transition ownership to the employees via an ESOP. The vision of the ESOP was to provide a stable ownership structure where good paying jobs will remain in Centre region for many generations.
“Success will be measured by SilcoTek’s employees’ children and grandchildren working there in the next 50 years.”
SilcoTek, which 100 patents and patent applications for its coating technologies, employs 70 people at its facility in the Benner Commerce Park.
