The second phase of Rich Products' Brownsville, Texas, manufacturing facility expansion is officially underway.
National New Markets Fund (NNMF), an affiliate of Los Angeles-based SDS Capital Group, will invest $17.5M of its New Markets Tax Credit allocation to support the 150,000-square-foot expansion, which will increase Rich’s production capacity for its growing branded appetizer business.
Rich’s largest capital campaign to date, the $117M expansion is comprised of two phases. Phase two, slated to be completed in July 2025, will add capacity for greater production capabilities and storage. The first phase, which began in 2023, included the development of a new frozen warehouse that is expected to open this summer. Upon completion, the full expansion project is expected to create more than 130 full-time jobs, 70% of which are slated to be filled by members of Brownsville’s marginalized communities.
“We’ve seen a huge influx in customer demand within our growing seafood and appetizer business, so adding capacity is key for continued growth,” said Kevin Spratt, president, Rich Products’ U.S./Canada region. “As a proud member of the Brownsville community for over 60 years, we’re fully committed to strengthening our local impact with the right combination of associates, products and infrastructure. We’re grateful to NNMF for being a key supporting player in this project and are excited about the opportunities this will create for our business, the local community and the valued customers we serve every day.”
The NNMF investment capital uses funding generated from the New Markets Tax Credit (NMTC) program administered by the U.S. Treasury Department. This program provides investment capital for projects benefiting low-income communities, including Rich’s Brownsville facility. In addition to creating job opportunities, Rich’s will offer workforce training to the Brownsville community, including computer literacy courses in partnership with Texas Southmost College. The courses will prepare the local workforce for employment at Rich’s and other regional organizations.
“The economic and community benefits from Rich’s expansion in Brownsville are noteworthy,” said Deborah La Franchi, CEO, National New Markets Fund. “This is a company that is committed to its associates—not only is it creating more than 130 jobs, but it’s offering quality wages and benefits in a community grappling with a 35.7% poverty rate.”