January 30, 2014
Aker BioMarine Manufacturing (AKBM Manufacturing) has secured $28 million in New Markets Tax Credit (NMTC) allocation from National New Markets Fund, LLC, Texas Mezzanine Fund and Chase New Markets Corporation to transform a vacant former Dreyer’s Grand Ice Cream plant into a fully operational krill manufacturing facility.
AKBM Manufacturing recently executed an agreement to purchase the facility and restore 50 manufacturing jobs within its first three years of operation. The facility has the ability to double its capacity and create an additional 50 jobs through future growth. The redeveloped facility will extract omega-3 fatty acids from krill to produce supplements designed to promote physical and mental health.
The $28 million allocation of federal New Markets Tax Credits (NMTCs) includes $12 million from National New Markets Fund, $14 million from Texas Mezzanine Fund and $2 million from Chase, which also served as the tax credit investor.
“The New Markets Tax Credit program was critical in making this project a reality,” said Gaetan Sourceau, CFO of AKBM Manufacturing. “Our expansion to Houston might not have happened without NMTC financing, and the resulting benefits—including the jobs that will be created—might have been lost.”
“This project has the potential to transform a severely distressed community,” said National New Markets Fund President Deborah La Franchi. “Our NMTC investment will help bring back high-wage, high-quality manufacturing jobs to Houston that were lost due to the closure of the Dreyer’s Grand Ice Cream plant.”
The project is located within a Texas Enterprise Zone, which means it is part of a program focused on creating jobs and reducing poverty in economically distressed area of the state. It is estimated that the project will generate more than $65 million annually through direct, indirect and induced economic output.
“We seek out highly innovative enterprises that are located in low-income communities and that can bring new capital and investment to the area,” said Wanda Clark, Vice President of Community Development Banking at Chase. “The Aker BioMarine Manufacturing project aligns with the community’s need to strengthen commercial and industrial districts, which are critical to the local economy and its ongoing development.”
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