RIVERBANK -- A Denver manufacturer is moving its production to the Riverbank Industrial Park and hiring about two dozen workers within a few months.
The company could have as many as 80 employees once it reaches full production by June 2012, city officials said.
Repsco uses recycled plastic to make slipsheets, an alternative to wooden pallets, and other materials used in the shipment and storage of goods, such as personal computers and wine.
Repsco signed a five-year lease with a five-year option last month with the Riverbank Local Redevelopment Authority, the city agency that runs the industrial park.
The Claus Road park is the former home of the Riverbank Army Ammunition Plant, which the Defense Department shuttered and turned over to the city in April 2010.
Riverbank is turning the former ammo plant into an industrial park with a focus on green jobs.
"It's a perfect fit with the community, with what the facility has to offer and what the community envisions," said Debbie Olson, executive director of the redevelopment authority. "Repsco sees opportunity in California because they have large clients here and can see great growth ahead."
Not counting Repsco, Olson said the industrial park has 22 tenants with about 200 employees, up from five tenants with about 100 employees when Riverbank took over operations.
The announcement is good news for Riverbank and a region plagued by high unemployment, said Bill Bassitt, chief executive officer of the Stanislaus Economic Development & Workforce Alliance.
"Eighty jobs is very significant in this economy," Bassitt said.
The county's unemployment rate was 17.5 percent in April, nearly double the national average.
Bassitt said this success will make it easier for Riverbank to land other environmentally friendly businesses.
Repsco will hire workers in September and start production in October, according to the city. Olson did not know how much the jobs will pay, but expects them to pay livable wages because they are high-skilled.
Repsco will begin production with 16,000 square feet and is expected to expand to 40,000 square feet by June 2012, according to the city.
Riverbank said Repsco will invest $2 million in equipment in its initial phase and $2 million in its final phase.
Olson said Repsco is paying 30 cents per square foot of space under its lease agreement.
Repsco officials did not return phone calls or e-mails seeking comment Thursday.
But in a city news release, Repsco Chief Executive Officer Paul Bennett Jr. said:
"Repsco is delighted to be expanding at Riverbank, where we already have long-standing relationships with many area businesses who share our commitment to 100 percent recycled products that can both save the environment and save money."
Olson said it is her understanding that Repsco will keep its administrative offices in Denver.
She said Repsco's customer base includes manufacturers of wine, nuts, fruit, dairy and beverages, many of them Northern San Joaquin Valley staples. Olson added that California also is attractive for Repsco because it uses recycled plastic made in the state.
On its Web site, Repsco said it was founded in 1971 and its customers include Apple Inc., Kraft Foods, Del Monte Foods and The Home Depot.
Business information company Dun & Bradstreet reported that Repsco had annual revenues of $6 million as of June 2010 and 25 employees as of September.
Assistant Librarian Karen Aiello contributed to this report.
Bee staff writer Kevin Valine can be reached at kvaline@modbee.com or (209) 578-2316.
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