Krinos Foods Invests More Than $20 Million to Expand Headquarters in the Bronx
New York City Economic Development Corporation selected Krinos to purchase the site from the city, located at 1734 Bathgate Avenue, for $3.5 million based on its response to a Request For Proposal. Krinos will invest an additional $17.3 million to construct its new headquarters, which is expected to open early 2014. The project will create approximately 32 construction jobs and add five new jobs to Krinois' existing workforce of 85 employees.
The Bathgate site will allow Krinos to remain in New York City. Once constructed, the new facility will have a more efficient layout, state-of-the art-equipment, and 36 foot high ceilings, nearly double the height of their existing Long Island City facility. It will allow Krinos to increase capacity and operational efficiency. Krinos also plans to seek NYCIDA assistance as part of its relocation.
"The commitment by Krinos to establish a new national headquarters and expand production in the Bronx is another vote of confidence in the future of the City's food manufacturing sub-sector and the larger industrial sector," said New York City Economic Development Corporation President Seth W. Pinsky. "Through tens of millions of dollars in private investment, this long vacant site will now be home to dozens of important jobs, stimulating economic activity and benefiting the Bronx for decades to come."
"In 1981 we invested in a then state-of-the-art facility in Long Island City that allowed the company to prosper for nearly 30 years. Now, through internal expansion and acquisitions we've outgrown that facility. We are thrilled to make this investment in New York City that will allow us to retain our trained and skilled employees, to continue to grow, and to efficiently serve our local, regional and national customers," said Eric Moscahlaidis, Krinos Foods President.
Investment in developing its industrial base to create jobs was prompted, in part, by a report by New York City economic development officials that said as offshoring costs increase, it is anticipated that industrial activities will continue to grow nationwide. New York City in particular offers unique location-based advantages for industrial activity, including a population of about 8.4 million, access to a large workforce and highly-skilled labor, and one of the nation's busiest ports based on import volume. The review also found that industrial businesses in the City are challenged by a lack of building stock appropriate for modern industrial uses, higher costs, and difficulty maneuvering City processes.
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