Ricoh Buys Tustin Plant That Could Employ 600

Ricoh Electronics has paid about $17.4 million to O’Donnell Brigham & Partners for a 250,000-square-foot manufacturing facility in Tustin that could employ 600 workers being hired locally as part of a $100 million national expansion.

Ricoh Corp. officials said they are making design plans for the space in the Freeway Technology Center and hope to move in by April. The facility will complement the manufacturing activities at Ricoh plants in Santa Ana and Irvine that employ 900 workers. The center is expected to include space for research and development.

Tokyo-based Ricoh plans to double U.S. production in the next three years because the relatively high value of the yen, in comparison to the dollar, has made importing more expensive. Ricoh also said worldwide concern over the U.S. trade deficit has led the company to try to enhance its reputation in the United States.

W. Blair Armstrong, a partner at O’Donnell Brigham, said Ricoh’s cash offer for the vacant, 2 1/2-year-old building was too good to turn down. Armstrong said O’Donnell Brigham spent less than $17.4 million for the land and construction of the building, but interest and continuing maintenance costs robbed the sale of profit.