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Residents hopeful about railroad takeover of Kovatch Mobile Equipment plant

Reading & Northern Railroad bought the north campus of KME. The complex consists of nine buildings spread over approximately 10 acres.

NESQUEHONING, Pa. — Reading & Northern Railroad bought the north campus of Kovatch KME this week.

The complex consists of nine buildings spread over approximately 10 acres.

Residents in Nesquehoning were concerned when Kovatch Mobile Equipment, the company that built custom fire apparatus and equipment, closed its doors earlier this month.

"The school district is already in trouble, so they worried about losing tax money. They're worried about losing jobs. They're worried about the classic, you know, Pennsylvania small town that fades away as manufacturing disappears," said Rhonda Burian, manager of the convenience store at the Sunoco gas station. 

But with the recent sale of the former Kovatch Mobile Equipment facility to Reading & Northern Railroad, residents are feeling hopeful.

"If it's going to bring revenue into the area, yes, and if it's going to create jobs, yes, for people, then I think that's fine instead of it just staying vacant," said Shelley Snyder of Jim Thorpe.

"I'm happy because we felt bad that all these people lost their jobs, which probably affected them because then they didn't have people coming in for lunch and snacks," said Robin Sockel of Lake Hauto.

The KME location is alongside the rail line that Reading & Northern purchased in 2021 from Carbon County – a rail line that now connects the Reading & Northern's Reading and Lehigh Divisions.

Rhonda Burian is the manager of the convenience store and Sunoco Gas Station just across the street from the facility.

"How are we going to maintain our business and how are we going to make this work without all these customers and so now we at least have this potential, definite potential, for several more, you know, many customers to come," Burian said.

With a new facility in Nesquehoning, Reading & Northern will now be able to maintain their equipment right down the tracks.

In a statement, Reading & Northern said:

"We anticipate locating important parts of our freight and passenger operations in Nesquehoning, which sits in such a perfect location for our railroad and our employees. We now will have the room to grow our equipment maintenance and repair facilities as well as providing much-needed storage."

Part of the $2 million sale includes a lease agreement so KME can finish the last of its work.

We still do not know if any new jobs will be available once the railroad moves in.

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