Shapiro, Re:Build Manufacturing announce $81 million investment for manufacturing center creation
Collaboration between the Commonwealth, Re:Build Manufacturing and RIDC is the latest economic development project that will expand innovation-focused manufacturing in Western Pennsylvania.
Renderings of the state-of-the-art manufacturing center to be built in Pennsylvania. Photo Credit, all images: R3A Architecture
Governor Josh Shapiro has joined leadership from Re:Build Manufacturing (Framington, Mass., U.S.), the Regional Industrial Development Corp. (RIDC), and Pennsylvania leaders to announce an $81 million investment to create a major, innovation-focused manufacturing operation in the New Kensington Advanced Manufacturing Park that will create 300 high-quality jobs in Westmoreland County.
Re:Build’s operations at the new regional headquarters in New Kensington will focus on state-of-the-art fabrication, manufacturing and integration and assembly projects in high-growth, innovation-driven industries including energy, life sciences, robotics, electric mobility, satellite communications and aerospace. The project will create Re:Build’s first ground-up manufacturing facility in the U.S. in Pennsylvania.
“Making our Commonwealth a leader in innovation, job creation and economic development is a top priority for my administration, and we stand ready to continue making projects like this one possible,” Shapiro says. “The funding increases in my budget will help us attract more companies like Re:Build that want to come to Pennsylvania and help retain the growing businesses that are already here — and we will continue to drive innovation on a global scale."
As part of the project, RIDC and the Westmoreland County Industrial Development Corp. (WCIDC) have entered into a purchase agreement with the park’s current owner, the Redevelopment Authority of the City of New Kensington, to acquire and redevelop the entire site. Beyond creating high-tech manufacturing jobs, Re:Build’s mission is to also provide the training needed to do this skilled work. The New Kensington site will work with Westmoreland County Community College and other local vocational training institutions to help students develop the skills required to qualify for employment at the facility.
“Bringing manufacturing back to the U.S. is critical to our economy, and a matter of national security,” Thomas Tull, board member and lead investor in Re:Build Manufacturing, explains. “America reclaiming the manufacturing mantle will take time and requires Re:Build’s holistic mission of combining precision manufacturing with cutting-edge technology. While this is no easy feat, the right team — led by Jeff and Miles — is in place to work on this important initiative, and Pittsburgh is the city to help further Re:Build’s mission.”
The company’s facility will be comprised of portions of five existing buildings and total 175,000 square feet once complete. Currently in serious disrepair, the facility will require $31 million in renovations, which will be funded by grants or loans from the Commonwealth, Westmoreland County and the Richard King Mellon Foundation, as well as equity investments from the RIDC and WCIDC.
Re:Build and RIDC received a funding proposal from the Department of Community and Economic Development (DCED) for a $1.5 million Pennsylvania First grant, a $7 million grant through the Redevelopment Assistance Capital Program and are encouraged to apply for loans through the Pennsylvania Industrial Development Authority — all of which is focused on rejuvenating the New Kensington Advanced Manufacturing Park. As part of the project, Re:Build will be investing $50 million in the project and creating approximately 300 new, full-time jobs within the next three years. More than 100 construction jobs will also be created to help renovate the new facility.
According to acting secretary of DCED Rick Siger, “To close this deal, the Shapiro administration was able to tap into one of the very best incentives tools we have — the Pennsylvania First Program. Governor Shapiro wants to make Pennsylvania a global leader in economic development, which is why he proposed a $12 million funding increase for the program to bring more projects like this one to the Commonwealth.”
Governor Shapiro’s budget proposal increases funding to attract and retain businesses in Pennsylvania, including:
- A 50% increase in the Manufacturing PA Innovation Program, which connects Pennsylvania’s universities with businesses to spur innovation and job creation here in the Commonwealth.
- A 25% increase in the PA Smart Program so students who are looking to continue on to higher education in a computer science or STEM program can do that.
- A $12 million increase for the Pennsylvania First Program to fund more expansion projects and bring future business investments and high paying jobs to the Commonwealth.
The project was coordinated by the Governor’s Action Team (GAT), an experienced group of economic development professionals who report directly to the governor and work with businesses that are considering locating or expanding in Pennsylvania.
Learn more about Re:Build Manufacturing here.