Construction of a 107,000-square-foot, rail-served plant in North Lebanon Township just got a half-million-dollar boost from Harrisburg.
Gov. Josh Shapiro on Oct. 4 announced an investment of $500,000 from the commonwealth to support Flexopack USA Inc. as it builds its first American manufacturing facility in Pennsylvania. According to a release from Shapiro’s office, the project will inject $33 million into the local economy and create at least 64 new, full-time jobs in Lebanon County.
Based in Greece, Flexopack USA will build the facility at 3010 Hanford Drive, the first phase of a three-phase project. According to the release, the plant will expand the company’s packaging product manufacturing footprint into the United States, including its role as the primary packaging supplier for Fredericksburg-based poultry company Bell & Evans.
“Pennsylvania is the best place in the country for businesses to grow, and I’m proud that Flexopack saw that when choosing the Commonwealth for its first U.S. manufacturing facility,” Shapiro said in the release. “I’m highly competitive, and I’m thrilled that our strong manufacturing and agriculture sectors helped us secure this project over Texas. We’re committed to making meaningful investments in our private sector to position Pennsylvania as an economic leader, create jobs, and bring manufacturing back to the United States.”
The company received a funding proposal from the state Department of Community and Economic Development for a $500,000 Pennsylvania First grant. The company was also encouraged to apply for the Manufacturing Tax Credit program, as well as the Rail Freight Assistance program through PennDOT.
“This project is a prime example of why the Shapiro Administration is focusing on the manufacturing and agriculture industries in Pennsylvania’s 10-year Economic Development Strategy,” said DCED Secretary Rick Siger. “We will continue to invest in companies like Flexopack to help strengthen these industries, grow our economy, and create real opportunity for Pennsylvanians.”
Manufacturing accounts for more than $116 billion in gross state product, compared to agriculture, which contributes $132.5 billion annually to the state economy, according to the release.
“Keeping the supply chain short keeps more Pennsylvania dollars here at home,” said Agriculture Secretary Russell Redding. “Investing to bring a major food-packaging manufacturer here is a huge win for our food producers, for the communities they support, and for Pennsylvania.”
Flexopack, a subsidiary of Greek manufacturer Flexopack International Limited, is a wholesale distributor of flexible packaging with special emphasis in co-extrusion of barrier and non-barrier films, the release explains. Flexopack’s primary market is the food industry, with emphasis in meat, poultry, cheese, and fish.
“Our new manufacturing facility in Lebanon County aims to strengthen the already significant commercial presence of Flexopack Group in the U.S. market,” Stamatios Gkinosatis, CEO of Flexopack S.A., said in a statement. “We are thrilled about our decision to proceed with this investment in Lebanon which will also further support — through local manufacturing — the increased packaging material requirements of our close partner Bell and Evans. … Our cooperation with the local authorities of Lebanon and the Commonwealth of Pennsylvania has been excellent and as foreign investors we are very pleased with the warm welcome that we have received.”
“Bell & Evans is proud to have Flexopack as a vendor partner for over 10 years.” Scott Sechler Sr, owner and chairman of Bell & Evans, said in the release. “Being a family-owned supplier, their focus on high quality, consistent materials align exceptionally well with Bell & Evans and our premium brand. We look forward to our continued long-term partnership and are thrilled to support them in their first USA facility, right here in Lebanon County, Pennsylvania.”
Susan Eberly, president and CEO of the Lebanon Valley Economic Development Corp., said she is “pleased that Flexopack chose the Lebanon Rails Business Park for their expansion,” noting the business park “has the proper infrastructure, which helped to make this project happen.”
Lebanon County Commissioners on Oct. 3 approved a 5-acre expansion to an existing Local Economic Revitalization Tax Assistance (LERTA) program created in 2007 to accommodate the Flexopack proposal. According to a discussion with commissioners at a work session in September, the acreage in question was omitted through an oversight.
LERTA, according to the commonwealth’s website, is a tax abatement program created by Pennsylvania lawmakers in 1977 authorizing local taxing authorities to provide tax exemptions in order to incentivize redevelopment of aging or deteriorating properties.
The plan is still under review by North Lebanon Township supervisors.
Read More: Several developments are on the horizon in North Lebanon Township
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