Investors are providing US$28.5m of funding to assist the expansion of RoyOMartin’s OSB manufacturing operations in Corrigan, Texas.
National New Markets Fund (NNMF) is investing the sum in New Markets Tax Credit Financing to help finance the US$115.1m facility expansion; which will create 123 new full-time positions and help retain 200 full-time jobs at the site.
The current plant covers 407,125ft2 and supplies OSB for specialty flooring and housing-related products. The new 370,400ft2 specialty facility is under construction on the company’s existing 150-acre campus and will increase total production capacity by 70%.
“NNMF’s investment of New Markets Tax Credits from the US Treasury Department is central to this manufacturing expansion,” said Roy O. Martin III, Chairman and Chief Investment Officer.
“This is exactly the kind of public-private partnership that makes large-scale growth possible in places that need it most — ensuring that rural Texas communities share in that prosperity. Together, we are driving economic growth across the region, retaining and creating high-quality jobs, and making a meaningful, lasting contribution to a historically underserved community.”
Founded in 1923, RoyOMartin is a premier manufacturer of wood products in the Gulf South and manages 550,000 acres of certified timberland and produces OSB, plywood and timber products across several locations.
“We’re deeply grateful to the New Markets Tax Credit programme and NNMF for making this expansion possible, bringing new jobs, renewed energy, and continued opportunity to our city.”
said Johnna Lowe Gibson, Mayor of Corrigan.
All new and retained positions at the expanded facility will exceed the US$19 per hour MIT Living Wage for one adult in Polk County and include industry leading medical and retirement benefits.
NNMF was launched by SDS Capital Group in 2005 to further economic and community development in distressed census tracts across the South and Great Lakes regions of the United States. Since 2013, NNMF refined its investment strategy to invest exclusively in U.S.-based manufacturing, food processing, and agricultural-focused businesses. NNMF’s capital is used for plant expansions, equipment, machinery, and working capital, with a mission of enabling these firms to remain in the United States so they can continue generating high-quality jobs within economically distressed communities.
“Rural manufacturing communities like Corrigan face severe economic challenges, and this expansion is exactly the type of project NMTCs are designed to support,” said Deborah La Franchi, Founder & CEO of SDS Capital Group, and President of National New Markets Fund.
“Our investment will help preserve and grow high quality jobs in a region where generations of families rely on employers like RoyOMartin for long-term stability.”
