Manufacturer to reconfigure operations, make $96 million investment
MADISONVILLE, Ky. (Oct. 30, 2012) – Berry Plastics Corp. will reopen its Madisonville operation, investing $96 million in the plant and creating more than 400 full-time jobs.
“Today’s announcement is a demonstration that Berry Plastics continues to build on its growth as a leading global manufacturer in its field,” said Gov. Steve Beshear. “We’ve worked hard with our community partners to make towns like Madisonville attractive to businesses, and that work is paying off. I’m proud of the hundreds of new jobs and the nearly $100 million invested here. This is a tremendous day for the commonwealth, for Madisonville, and for Berry Plastics.”
Established in 1967, Berry Plastics manufactures injection-molded plastic packaging, thermoformed products, flexible films and packaging, as well as tapes and corrosion protection products. The company, which has more than 950 current employees in Kentucky at facilities in Franklin, Danville, Louisville and Bowling Green, plans to reconfigure its Madisonville operation to increase the company’s production capacity.
“I am very pleased to announce that we will soon begin reconfiguring our Madisonville, Kentucky facility, which is slated to begin production in 2013,” said Jon Rich, chairman and CEO of Berry Plastics. “We are extremely appreciative of the Commonwealth of Kentucky, Hopkins County officials and the city of Madisonville for their joint support of this initiative, which will allow us to reopen the facility – creating the opportunity for new jobs within the region and specifically the Madisonville community.”
Berry acquired the Madisonville (Hopkins County) facility during its acquisition of Rexam’s specialty and beverage closures business in August 2011. Earlier this year, the company shuttered the facility, as a result of the redistribution of production to its other rigid closed top manufacturing facilities. The facility had employed approximately 140. Berry announced today that it will convert the facility to manufacture rigid open top products.
“This is an exciting investment in Madisonville by Berry Plastics Corporation,” said Sen. Jerry P. Rhoads of Madisonville. “Our city will reap the benefits of new jobs, economic growth and development. Berry Plastics’ decision to reopen its operation in Madisonville also speaks well of our workforce. I applaud Gov. Beshear for taking the lead to support this industry, their employees and their families.”
The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved the company for tax incentives up to $10 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.
KEDFA also approved Berry Plastics for tax benefits up to $450,000 through the Kentucky Enterprise Initiative Act, which allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing equipment.
In all, 16 new and expanding industry announcements have been made in Hopkins County in the manufacturing and supportive service sectors during Gov. Beshear’s administration. Those projects represent more than 800 new jobs and $128 million in new capital investment in the community.
Hopkins County has also been certified by the Kentucky Workforce Investment Board as a Work Ready in Progress Community. The certification is an assurance to business and industry that the community is committed to providing the highly skilled workforce required in today’s competitive global economy.
For more information on Berry Plastics, visit www.berryplastics.com.