Keeprite Refrigeration selects Synergy Park for $55m expansion of commercial refrigeration manufacturing operations

The nation's leading commercial refrigeration manufacturer is relocating and expanding operations into Kilgore's Synergy Park.

Tersco Property Management Ltd. / Keeprite Refrigeration, Inc. considered Kilgore for a previous expansion back in 2017, but the company eventually opted to grow in place on its existing site on FM2011 in Longview. Years later, in January 2023 the landlocked manufacturing outfit turned its eye again to open ranges south, aiming to eventually enclose 1 million square feet on 70-acres off KEDC's Alliance Way in the years ahead.

It's another economic development opportunity that brought all Kilgore-area taxing entities to the table to help secure a minimum real and personal property investment in excess of $55 million along with scores of new fulltime jobs.

"Founded in 2008 in Longview with just 18 employees, Keeprite Refrigeration, Inc. has grown dramatically over the years," according to Frank Xu, Executive Vice President. "Today, we boast a dedicated team of nearly 200 professionals. Our collaboration with Keeprite Refrigeration in Canada has positioned us at the forefront of the commercial refrigeration industry in North America."

 

The company is relocating to Lot 22 on Synergy Park's Alliance Way – the 70.4-acre tract will be owned by Tersco Property Management with Keeprite Refrigeration's coming facilities occupying the bulk of the space.

A number of easements have been cleared from the site since Fall 2023, and the company officially closed on the property April 16. Keeprite Refrigeration is selecting three frontline employees to actually turn the dirt in a groundbreaking ceremony planned for early June.

"They want their employees in the spotlight," said Kilgore EDC Executive Director Lisa Denton. "I think that speaks volumes about their company culture."

Likewise, 10 acres of the property acquisition was included after a special request by Xu.

“This particular, small piece of Synergy Park is more of a green space, with topography issues and other challenging elements that would make traditional development difficult," Denton said, “but it happens to be perfect for the employee-and-family use Keeprite Refrigeration has in mind.”

The new Keeprite Refrigeration Campus is designed not only as a place of work but also as a hub for learning and leisure, Xu said. It will include a mile-long walking trail within the 10-acre employee green space along with sports and exercise facilities, embodying the company's commitment to a people-centric workplace.

"The new facility will serve as a beacon for technical innovation and is expected to further enhance our product offerings and customer service," Xu said. "It represents our confidence in the future and our commitment to investing in our people and communities."

 

The City of Kilgore and Kilgore College initially awarded abatement incentives to Tersco Property Management / Keeprite Refrigeration. Gregg County joined in with more rebate-based tax incentives last Fall, moving the project forward. Even with tax incentives in place, the project is still poised to generate an estimated $10.8 million in property tax revenue in the coming decade from the Company’s expansion.

According to Denton, as the company is currently located in a neighboring community, incentive values were based not on Keeprite Refrigeration's current employment or personal property values but, rather, on anticipated development: "Only new investment values were taken into consideration.”

The company's current full-time employment base is 153 – the incentivized plan is to add 60 more full-time spots during the 10-year contract period.

Current plans call for an initial 470,000 square-foot facility with real and personal property investment valued at a minimum of $55 million. Keeprite Refrigeration's current personal property (figured at almost $7.3 million) will be relocated to the new site within one year of project completion.

The coming building is just phase one of three, with designs to ultimately grow to more than 1 million square-feet in operation in Kilgore: "They'll end up being the largest building in Synergy Park once they get all three phases done," Denton noted, though that timeline is to be determined.

 

Eyeing Kilgore for an expansion in 2017, the company ultimately expanded on their current property at 1998 FM 2011 in Longview then outgrew that larger footprint in about five years.

"They're landlocked," Denton said, "which is what led to this planned relocation.

"While I do not know the current plans for the property they are operating today, the company does plan to retain ownership."

Keeprite Refrigeration's current location is within the City of Longview's Extraterritorial Jurisdiction – Kilgore's neighbor to the north did not have a suitable spot immediately available to meet the company's needs.

"As regional partners, we were in communications with LEDCO throughout this process, Denton said. "They had also looked at Mesquite, so this was an important retention project to maintain the jobs for our area residents," keeping the future of both communities and the company at the forefront.