Reitnouer Inc. plans to move its manufacturing from its Muhlenberg location to Cumru Township, retaining 250 jobs and creating 60 new positions in Berks County.
The company is a manufacturer of bolted-aluminum flatbed and rail-deck trailers for trucks and has been approved for a $1.5 million low-interest loan to renovate an existing 141,000-square-foot facility before moving there, according to Lindsay Frank of the Pennsylvania Industrial Development Authority.
“It’s exciting to be able to expand the business in Berks County and in Pennsylvania,” Bud Reitnouer, president of the company, said this morning. “We’re multigenerational here. We had offers from other states, but we wanted to stay here.”
According to Gov. Tom Corbett, Reitnouer will invest a total of $4.5 million in the project. The $1.5-million, 15-year loan at 3.5 percent will go to the Greater Berks Development Fund on behalf of Reitnouer to help it achieve this goal.
“Reitnouer has outgrown their Reading Crest Avenue facility and will be transferring their manufacturing process to the new facility,” Frank said. “We have the location of the [new] site as 5 E. Point Drive, Birdsboro.”
According to Reitnouer, Susquehanna Bank is funding $2.5 million, PIDA is funding $1.5 million and GBDF is funding $500,000.
The company is buying the building for $3.2 million and putting in $1.3 million for an addition and renovation, Reitnouer said.
“We’re not just buying the building but adding one million-plus in equity,” Reitnouer said. “We’re not only occupying a vacant building for three years, but expanding on it and improving on it. That sounds like a win-win.”
Debra Millman, GBDF director of business development, said this morning it is a “great project” and she is excited to fill a building that has been vacant for a few years, keep 250 existing jobs in Berks and create 60 new jobs.
“We were able to find a user and help this business expand,” Millman said. “We’re more than ecstatic that we were able to work with them on the expansion. Greater Berks [Development Fund] is the local conduit for that PIDA plan.”
The GBDF is a private nonprofit community based organization offering financing, real estate and development services to businesses of all types and sizes.
The organization helps companies access low-cost public and private financing and tracks available commercial and industrial investment properties for businesses.
“Through the support of this relocation, Reitnouer will have the resources to continue to grow and create jobs in Berks County,” Corbett said.
This will be the sixth jobs announcement in Berks County this year, adding more than 450 new positions and retaining more than 240 employees, according to Corbett.
PIDA provides capital for building acquisition, construction and renovation work, primarily for manufacturers, industrial developers, research and development firms, agricultural processors and employers looking to establish national or regional headquarters in Pennsylvania.
In 2013, PIDA approved $47.5 million in low-interest loans that have resulted in $79.9 million in private investment and supported 9,744 jobs.