TRENTON, NJ—CleanTex Services, a family-owned and operated healthcare service business founded in 1995 will remain in New Jersey, thanks to $38 million in Grow New Jersey tax incentives.
In return for the incentives, the firm will lease 96,000 square feet, doubling the size of its Irvington, NJ, operations, creating an estimated 350 new jobs, while preserving other jobs that might have moved out of state. The firm will also modernize its Trenton plant.
A provider of linen and laundry management services to hospitals and healthcare facilities in NY, NJ, CT and PA, CleanTex is known for balancing environmentally conscious business practices with high-volume quality cleaning and infection control. These unique real estate and infrastructure needs required CleanTex to vet each potential site carefully before making a selection.
The decision to remain in New Jersey “demonstrates the ability of the Grow NJ program to assist businesses of all sizes,” says Melissa Orsen, CEO of the New Jersey Economic Development Authority. “CleanTex's continued success in New Jersey is a testament to the ability of family-owned businesses to thrive in the State, and we are thrilled to offer support to help nurture this growing enterprise.”
CleanTex had identified suitable property in South Philadelphia for the company's relocation and expansion before ultimately accepting NJ's incentive award. CleanTex is headquartered in Linden, NJ. CleanTex, which also has operations in Brooklyn, had outgrown both New Jersey facilities, and was looking to incorporate the latest material handling systems and larger washer, dryer, and folding systems now available.
According to NJEDA, the company investment in Irvington will create more than 200 new jobs and retain 82 jobs at risk of leaving the state. In Trenton, CleanTex's 39,000-square-foot facility will be upgraded with newer, more efficient technology and equipment. By adding shifts, the company will add 152 new jobs and retain 166 positions. Total private investment associated with the two facilities is expected to exceed $14.8 million, NJEDA says.
“The NJEDA's Grow NJ incentive program was the critical factor in keeping CleanTex in New Jersey and preventing an out of state move,” says Lee Winter of WRE Consulting, which advised CleanTex, adding that “incentives are playing a central role in making real estate deals happen.”
“In the past, economic incentives served as a tiebreaker,” Winter says, but due to more powerful incentives and escalating real estate costs, “incentives are now the straw that stirs the drink.”
“Since CleanTex was founded in 1995, New Jersey has proven to be a strategic location in terms of both logistics and hiring appropriately-skilled workers,” says Jacob Zahler, CleanTex CEO. “CleanTex is dedicated to the communities where its plants are located, and pleased that with the help of the EDA, it cannot only remain, but also grow in Trenton and Irvington.”
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
