Kayem Foods, Maker of Fenway Franks, to Purchase New Equipment and Create 20 Jobs with $6.5 Million Recovery Zone Bond
October 7, 2010
Congressman Michael Capuano and Secretary of Administration & Finance Jay Gonzalez joined Kayem Foods, maker of the top brand of hot dogs in New England, and MassDevelopment to celebrate a $6.5 million Recovery Zone Facility Bond issued on the company’s behalf by the Agency. Kayem Foods plans to purchase new equipment and create 20 jobs in Chelsea with help from the bond proceeds. Bank of America purchased the bonds. The company’s new high-speed production line will improve consistency and food safety while adding capacity needed to keep up with the company’s growth. The state-of-the-art sausage and frank line is set to open for the summer selling season in 2011. Between its two plants in Chelsea and Woburn, Massachusetts, Kayem also produces fresh Italian sausage and brats, kielbasa, dinner hams and and deli meats. Kayem has made the Fenway Frank, the official hot dog of the Boston Red Sox, since last year.
â€œFederal investment in our communities through the stimulus bill offers so many tangible benefits â€“ from jobs and energy efficiency to upgraded facilities and equipment,â€ said U.S. Representative Michael Capuano. â€œKayem Foods has deep roots in Chelsea and this Recovery Zone Facility Bond will help them enhance production of their products.â€
“This project is an excellent example of what can happen when government and business work together to create new jobs and support key industries,” said Administration and Finance Secretary Jay Gonzalez. “The Recovery Zone Facility Bond Program offers the state an ideal opportunity to support the vital manufacturing sector that is critical to the Commonwealth’s long-term economic success and jumpstart private investment, development and opportunity throughout the Commonwealth.”
Founded in 1909, Kayem Foods is a leading manufacturer and marketer of meat products both regionally and nationally. With $150 million in sales last year, the company in Chelsea has more than 200,000 square feet of space and employs more than 400 people. The company also operates an 80-employee fresh sausage plant in Woburn that produces the highest volume of fresh sausage in the region.
“The Red Sox and Fenway Franks go together like manufacturing and Massachusetts,” said MassDevelopment President and CEO Robert L. Culver. “MassDevelopment appreciates the opportunity to help Kayem Foods, maker of such renowned brands as Kayem, al fresco and Fenway Franks, expand its Chelsea production facility.”
“We’re very excited to have been able to work with MassDevelopment to secure financing for our new line,” said President and CEO of Kayem Foods Inc. Ralph O. Smith. “The program will help us to remain competitive and provide the expanded capacity we need to support our national expansion.”
Announced by the Administration in October 2009 and authorized by the American Recovery and Reinvestment Act (ARRA), the Recovery Zone Bonds support public and private development efforts by offering favorable borrowing rates for projects within designated “Recovery Zones” that the Administration has identified as existing state Economic Target areas. Chelsea is included in one of those areas.
The Executive Office of Housing and Economic Development and the Executive Office for Administration and Finance allocate the bonds to eligible applicants. MassDevelopment issues Recovery Zone Facilities Bonds, which are purchased by private investors.
MassDevelopment, the state’s finance and development authority, works with businesses, financial institutions, and communities to stimulate economic growth across the Commonwealth. During FY2009, MassDevelopment financed or managed 229 projects statewide representing the investment of nearly $1.2 billion in the Massachusetts economy.