Sabert Corp. of Sayreville, N.J., is constructing a West Coast facility to distribute, and eventually thermoform, plastic serviceware.
Work in Riverside, Calif., has begun on foundations for an initial 120,000 square feet, suitable for expansion in several phases. A Sabert affiliate acquired 16.6 acres. Distribution operations are to begin in December, and the firm will end existing arrangements in the West with several public warehouses.
Sabert said its site selection reflects highway proximity, labor availability and a stable supply of electricity. Riverside's municipal-owned utility will provide power, eventually at special rates 40 percent below the standard rate in its first year of use and 20 percent during the second year.
Riverside's industrial development authority approved issuance of $7 million in bonds for land, construction and equipment. Sabert is obligated to repay the bonds.
Sabert will access the industrial bonds over several years and will delay accepting the energy-rate incentive until manufacturing can effectively utilize the benefit, Gary Ziznewski, chief financial officer, said in a telephone interview from his New Jersey office.
The Bank of New York helped finance the project.
Sabert's initial phase in Riverside includes plans for manufacturing, but no timetable has been set for installing production lines.
Privately owned Sabert has extruded and thermoformed plastic for nearly 20 years and also makes plastic serviceware at subsidiary Sabert Corp. Europe SA in Nivelles, Belgium.
In New Jersey, Sabert converts resin into rolls and thermoforms platters, bowls, plates and containers for food-service, food-processing and consumer applications.