Jupiter, FL (August, 2023) – RENCO USA, a company specializing in the manufacturing and distribution of a composite structural building system, announced today that it has closed a first round financing by issuing $18 million in convertible notes, which value the company at $318 million.
RENCO will use the funds to complete its first domestic factory and launch its business in the United States. The new manufacturing facility and headquarters in Jupiter will create more than 100 new jobs in Palm Beach County.
With shortages in labor and affordable housing impacting communities across the U.S., the timing could not be better for a new building system that is ‘Cat 5 Hurricane’ rated, faster and easier to build, more affordable and more sustainable than traditional methods. Until now, building structures in the developed world could only be built using a combination of wood, steel or concrete. RENCO (renewable composites) is the first new, fully approved structural building system since the creation of reinforced concrete more than 125 years ago.
“This is the biggest breakthrough for a new structural building material in my lifetime, and as housing prices hit record highs and labor shortages halt new construction, we are launching a completely new solution,” said Tom Murphy, Jr., RENCO USA Co-Founder and Founder & CEO of Coastal Construction Group. “RENCO addresses America’s labor shortage because workers don’t need specialized training—instead, nearly anyone can build the color coded, interlocking system with easy-to-follow plans, all in a shorter time frame than typical construction. These advantages also mean builders can create more housing units, more affordably. We are currently in the final stages of completing our proof of concept project in the USA, a 96-unit, four-building development in West Palm Beach, with the first two buildings already fully leased.”
“This is an entire building system. RENCO is literally changing the way we build, from the bottom to the top. From the composite floor decking, joists, walls and lintels—to the composite roof trusses and sheathing,” said former Congressman Patrick E. Murphy, who is helping to lead RENCO’s expansion. “Since it’s 100% recyclable, with a smaller carbon footprint, RENCO is greener and more sustainable than the old ways of building with wood or concrete. And it will outlast any building system today, since it cannot rust or rot, termites can’t eat it, mold won’t grow on it and provides 1 and 2hr fire rating.” After a decade of testing (400+ tests in 12 states), RENCO’s fully patented system is certified for use under the International Building Code (IBC) and in Florida’s High Velocity Hurricane Zone. RENCO is currently completing seismic testing for earthquake zones and is fully confident that it will obtain approval to build in all seismic design categories.
“We are extremely excited to be an investor in RENCO USA,” said Gil Dezer, President of Dezer Development, whose recent projects include the innovative Porsche Design Tower and Residences by Armani/Casa. “As a partner in the first demonstration project to utilize RENCO’s materials, we have seen firsthand just how revolutionary these products are. Given the advantages of these materials over traditional structural products, we believe RENCO may change the way real estate developments are constructed in the future.”
Gil Dezer joins South Florida real estate investor Eddy Chabli, Managing Partner of Avant Garde Partners, and other private investors in RENCO USA. “With our background and focus on technology, environmentally conscious growth and real estate development, RENCO is the change we’ve been looking for and we believe it is the future of construction,” Chabli said.
RENCO Co-Founder Tom Murphy, Jr. has spent 55 years in the construction industry since becoming the youngest licensed contractor in Florida’s history, as a 19-year-old student at the University of Miami. Today, Coastal Construction is one of the largest general contractors in the Southeast with more than $3 billion in current work, having built more than 50 million feet of vertical construction and more than 20,000 multi-family units—including the new Aston Martin Residences, the Four Seasons Surf Club, St. Regis Resort and Fendi Chateau.
“I’ve spent my entire life and career in construction, and with RENCO, we now have an opportunity I could have never imagined: shaping the future of building and positively impacting the lives of people around the world,” he said.
About RENCO USA
Florida-based RENCO USA manufactures and distributes a fully patented structural building system made from renewable composites. Its state-of-the-art building system is composed of interlocking composite pieces that are all adhesively joined into a monolithic structure. It includes the entire structure of a building, from the walls (structural building blocks), to the floor joists (pultruded), to the floor (composite decking) to the composite roof trusses and sheathing. Simply put, it’s an alternative way to build—utilizing proven, new materials that are more sustainable, affordable and easier to install.
RENCO’s patented building system, blocks, joists, decking and adhesives have been evaluated in ANSI certified laboratories for structural performance, physical characteristics and fire resistance. After thorough evaluation, IAPMO approved RENCO’s Evaluation Criteria and issued its Evaluation Report to permit the use of the RENCO building system under the International Building Code, including High Velocity Hurricane Zones. RENCO’s building system is currently approved for structures up to five stories; expanded approvals for taller structures are pending. RENCO is currently completing seismic testing for earthquake zones and is fully confident that it will obtain approval to build in all seismic design categories. www.renco-usa.com
