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Chris DeMuth Jr. is the founder of Rangeley Capital LLC. Rangeley is an investment firm that focuses on event driven, value-oriented investment opportunities. Rangeley Capital and his value investing forum, Sifting the World (StW), search the world for misplaced bets. Rangeley exploits them for... More
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  • Ugo Gussalli Beretta Makes A Move 13 comments
    Mar 6, 2014 12:12 PM

    "My family has operated our business from the same small town in northern Italy for 500 years. This means that when we make a commitment to a local community, our hope is to do so for decades, if not centuries, to come.

    We apply this same philosophy to all of our factories and locations throughout the world. Such a commitment is not a one-way street, though.

    In return for our investment in jobs, facilities and assistance to the local economy, we ask for respect and a supportive business climate.

    We deserve such respect. We make the standard sidearm for the U.S. armed forces. We also make firearms that police and consumers use to save their lives and the lives of others.

    We also make sporting firearms that are enjoyed by tens of millions of people worldwide, from Olympic shooters to weekend hunters.

    Our business has grown in recent years, and because of that, we needed to expand production in our U.S facility, located in Accokeek, just outside of Washington, D.C., in the Maryland suburbs.

    Unfortunately, as we were planning that expansion, Maryland's governor and legislature voted in favor of new regulations that unfairly attack products we make and that our customers want.

    These regulations also demean our law-abiding customers, who must now be fingerprinted like criminals before they can be allowed to purchase one of our products.

    We have seen these types of legislative proposals in Maryland before, and they never seem to reduce crime. Maybe this is because the proponents of such legislation blame the product instead of human misconduct.

    But in any event, because of these new restrictions and the pattern of harassment aimed at lawful firearm owners we have seen in Maryland over the decades, we decided to expand our facilities in a state that shows more respect for citizens who exercise their Second Amendment rights.

    We chose Tennessee for our new facility expansion. Our plans for that location are extensive and long-lasting.

    We chose Tennessee because the governor and legislators in that state understand what it means to support businesses (such as through job recruitment and training programs) that improve employment in the state without treating companies as a necessary evil.

    We chose Tennessee also because the vast majority of its residents and their elected officials have shown that they respect and honor the American tradition of personal freedoms, including the right to bear arms."

    - Ugo Gussalli Beretta

    CEO and president of Beretta Holding S.p.A.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Additional disclosure: Original letter: p.washingtontimes.com/news/2014/feb/4/be.../

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Comments (9)
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  • Fibonacci Sequence
    , contributor
    Comments (612) | Send Message
     
    For an old school European private/family company, they have surprisingly innovative products.
    6 Mar 2014, 12:27 PM Reply Like
  • jaginger
    , contributor
    Comments (816) | Send Message
     
    Tennessee seems to be attracting a lot of business these days.

     

    Beautiful state, beautiful people, and (sometimes) beautiful view of government's role in the lives of its citizens.
    6 Mar 2014, 12:28 PM Reply Like
  • toddro
    , contributor
    Comments (226) | Send Message
     
    I warmly welcome Beretta to Tennessee and I hope they do well here. Heck, I may go poke around and look for a job!

     

    I have also learned that Thiel Loudspeakers is moving operations to the Nashville area - they are a fabulous maker of audiophile loudspeakers.

     

    TN - no state income tax, very low property taxes, low cost of living, non-restrictive gun laws, conservative governance, temperate climate, centrally located for easy flight times, dozens of colleges & universities (the Athens of the South), great public schools (in most areas), oh and the hot chicken…
    6 Mar 2014, 04:01 PM Reply Like
  • jbzw
    , contributor
    Comments (1147) | Send Message
     
    No state income tax is excellent. However, I believe Tenn hasa 6% tax on interest and dividends. Maryland tax freedom day is April 21, plus its counties have their own piggy back taxes. The South will rise again based on its low or no tax rates and its business friendly policies.
    7 Mar 2014, 10:06 AM Reply Like
  • toddro
    , contributor
    Comments (226) | Send Message
     
    That is true, but that int & div tax is easily avoided by moving your money into one of the DOZENS of exempted entities. Heck, even distributions of income or earnings from IRAs is exempt, as is publicly traded REIT income, various bond income, simple interest from savings accounts, etc. It is really a non-issue for most residents. Come on down!
    7 Mar 2014, 03:06 PM Reply Like
  • TheSandman
    , contributor
    Comments (165) | Send Message
     
    I expected something like this. Kudos to Ugo for doing the right thing. I am familiar with the products produced in the Accokeek, MD, factory. You know, just doing my patriotic duty for the families and friends of friends that are employed on the Eastern Shore. Good for TN, but (jeesh!) there isn't much else over there besides chicken farms and crab factories.
    7 Mar 2014, 10:03 PM Reply Like
  • grendelbane
    , contributor
    Comments (414) | Send Message
     
    While the best things about Tennessee have already been mentioned, I will add one more. Drive north for a few minutes, (or more, but not much more), and you are usually in Kentucky, where I live.

     

    I will admit that I have not researched TNs hall tax.

     

    I live fairly close to the TN/KY state line. TN people drive north to buy groceries, as KY does not charge sales tax on most food. They used to drive north to buy lottery tickets, but the TN lottery put an end to that. At one time we KY 18 year olds drove south to buy beer. Now, it is 21 on both sides. Their is an establishment south of me which straddles the line, they sell beer on the TN side, and have dancers on the KY side. (I haven't been there, a friend told me it is quite tame, but this is the buckle of the bible belt, and so it was controversial when proposed. I haven't heard much about it lately).

     

    At least I can welcome Beretta to the south. Though, I can remember a time when Maryland would have been considered at least an honorary member of the South.

     

    What can I say? I am from Kentucky, a border state which combines the grace and charm of the North with the brisk efficiency of the South.
    14 Mar 2014, 08:09 PM Reply Like
  • toddro
    , contributor
    Comments (226) | Send Message
     
    Don't forget the Bourbon Trail, Keeneland, and some fantastic fishing areas that no one talks about! I enjoyed some of your Four Roses last night in fact. Cheers!

     

    The only real drawback to KY is you guys border Ohio, and the people of Ohio have lost their minds… ; > )

     

    http://bit.ly/PCVvuB-‘level-2-lookalike-fi...

     

    http://huff.to/PCVvuE
    15 Mar 2014, 08:50 AM Reply Like
  • toddro
    , contributor
    Comments (226) | Send Message
     
    More gun manufacturers on the move - more heading south too…

     

    http://bit.ly/1dhowXr
    20 Mar 2014, 10:36 PM Reply Like
  • toddro
    , contributor
    Comments (226) | Send Message
     
    http://tnne.ws/1A31Cv1

     

    Beretta U.S.A. Corp. announced today that it has decided to move its ENTIRE manufacturing capabilities from its existing location in Accokeek, Md., to a new production facility that it is building in Gallatin.

     

    The Gallatin facility is scheduled to open in mid-2015. Beretta U.S.A. had previously planned to use the Gallatin facility for new machinery and production of new products only.
    22 Jul 2014, 05:00 PM Reply Like
  • TheSandman
    , contributor
    Comments (165) | Send Message
     
    I thought this was a foregone conclusion. The local talk radio in DC reported this today as if it were breaking. Perhaps they don't read Seeking Alpha?
    22 Jul 2014, 10:04 PM Reply Like
  • toddro
    , contributor
    Comments (226) | Send Message
     
    Originally they just planned on setting up in TN for new operations and new products. Now they have announced they are moving ALL operations, including existing product lines as well. It's a much bigger move that what was announced earlier this year.
    22 Jul 2014, 10:32 PM Reply Like
  • TheSandman
    , contributor
    Comments (165) | Send Message
     
    Thanks for the info. That was not at all clear from wtop radio on the morning drive.
    22 Jul 2014, 11:37 PM Reply Like
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