Friday, August 22, 2008

PRS HQ to Triple in Size

Next year there'll be more of PRS to love. Literally.

Paul Reed Smith Guitars has received a $10 million private equity bond from the state of Maryland to help pay for a major expansion of its manufacturing facility in Stevensville, Md. The expansion will more than triple the size of the factory, going from 25,000 square feet to 84,000 square feet, and is expected to add 60 more jobs. The new areas will be dedicated to building amps and acoustic guitars. It is also reported that PRS will develop more products in the lower price range (today their products range from $500 to $20,000, with an emphasis on the higher end).

"There are some large segments of the market we should be addressing," said Paul Reed Smith. "We have the skills and the supplies and the talent to do it. But we were out of room, and now we won't be out of room."

The bond is tax exempt and provides the company with a low interest rate for repaying the loan. The bond was issued by a private lender through the Maryland Department of Business and Economic Development (DBED). DBED also approved a $1.5 million loan in 2005 to help pay for the expansion.

Smith is working with Ricky Skaggs to design acoustic guitars and with well-known amplifier builder Doug Sewell on amp products.

Source: Baltimore Sun

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