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Berks manufacturer buys Cumru Twp. property for expansion

Wednesday, September 18, 2013http://www.lvb.com/article/20130910/LVB01/130919990/Berks-manufacturer-buys-Cumru-Twp-property-for-expansion

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Reitnouer Inc. President Bud Reitnouer with some of his innovative bolt-on aluminum truck trailers at his Muhlenberg Township facility. – (Photo By Eric Steinkopff) Reitnouer Holdings LLC recently purchased 22 acres with 106,239 square feet of industrial space at 5 East Point Drive in Cumru Township, according to Steve Willems of NAI Keystone Commercial and Industrial LLC.

“The clear span and 400-foot-long bays are ideal for our technology and manufacturing process,” said Bud Reitnouer, president of the company that makes bolted-aluminum flatbed trailers they market themselves for trucks and bolt-on rail-deck trailers for railroad cars for Canadian company Raildecks Intermodal.

Reitnouer Inc. plans to move its manufacturing from its Muhlenberg Township facility to the new location, retaining 250 jobs and creating 60 new positions in Berks County with the help of a $1.5 million low-interest loan to renovate the existing 141,000-square-foot facility before moving there, according to Lindsay Frank, spokeswoman of the Pennsylvania Industrial Development Authority.

“Reitnouer has outgrown their Reading Crest Avenue facility and will be transferring their manufacturing process to the new facility,” Frank said.

Reitnouer Inc. has been sharing the nondescript brick manufacturing facility in Muhlenberg with Dor-Mae Industries. Reitnouer Inc. has been the number one seller of aluminum flatbed and drop-deck trailers for each year since 1999, according to Willems.

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 them achieve this goal.

“It’s exciting to be able to expand the business in Berks County and in Pennsylvania,” Reitnouer said. “We’re multigenerational here. We had offers from other states, but we wanted to stay here.”

According to Reitnouer, Susquehanna Bank is funding $2.5 million, PIDA is funding $1.5 million and GBDF is funding $500,000.

They are 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, told Lehigh Valley Business that 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 County and create 60 new jobs for the area.

“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 actual purchase will be by Reitnouer Holdings and Reitnouer Inc. will occupy the building.”

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.