LATROBE -- Gov. Edward G. Rendell yesterday gave the new owners of Latrobe Brewing's plant $4.5 million in state aid and said more than $7 million in additional assistance is on the way to help resume production at the former home of Rolling Rock beer.

The $4.5 million is a combination of grants, low-interest loans and tax credits that will help City Brewing of LaCrosse, Wis., begin production in May.

The company projects it will employ about 100 by the end of the year and 250 within three years.

The remaining money, also expected to be a combination of grants and loans, will come from a state fund created in 2004 to finance infrastructure improvement projects that promote economic development.

It will be used to expand Latrobe's waste water treatment plant, which is not equipped to treat the extra water City Brewing will use once it reaches full production. The company will brew beer, flavored malt beverages, energy drinks and teas under contract for companies that own Mike's Hard Lemonade, Arizona teas, Monster Energy drink and other brands.

Gregory J. Inda, City Brewing's chief financial officer, said the first union workers will be called back to work in March and employment will begin to ramp up in May, when production begins.

"The business is definitely there. We just need to get the brewery up and running," Mr. Inda said.

He said production could reach 500,000 barrels this year and 750,000 to a million barrels next year. Work on the waste water treatment plant will continue into 2009, when City Brewing anticipates reaching full production, Mr. Inda said.

InBev, the former owner of the plant, sold the Rolling Rock brands for $82 million last year to Anheuser-Busch, which transferred production of the beers to its Newark, N.J., plant. City Brewing subsequently purchased the plant from InBev and negotiated a labor agreement with the IUE/Communications Workers of America, which represents the plant's union work force.

The average worker at the plant will earn nearly $40,000 annually.

Mr. Rendell said the state's Commonwealth Financing Authority, which administers the infrastructure aid program, is scheduled to vote on the City Brewing package next week.

The $4.5 million in assistance announced yesterday includes $3.4 million in grants, a $400,000 loan, $500,000 in tax credits and $250,000 in job training funds.

"It's a terrific deal for us," Mr. Rendell said. "[City Brewing] is showing faith in us. They're showing faith in the work force."

Mr. Rendell also said he will talk with the investor group considering purchasing the assets of bankrupt Pittsburgh Brewing if they are able to win court approval for the acquisition. The Lawrenceville brewery sought bankruptcy protection in December 2005.