A manufacturer of injection-molded plastic packaging, thermoformed products, corrosion protection products, flexible films and packaging, Berry Plastics Corporation, will invest $96 million to reopen its Madisonville, Kentucky production plant, 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.”
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 and convert the facility to manufacture rigid open top products. Berry acquired the Madisonville facility during its acquisition of Rexam’s specialty and beverage closures business in August 2011.
“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.”
“Today is indeed a great day in Madisonville,” said Madisonville Mayor David Jackson. “The city of Madisonville welcomes Berry Plastics’ investment of capital and jobs to our industrial community. The tremendous investment and large number of jobs will have a wonderful impact on our community. Many of our citizens will have increased opportunities to prosper economically leading to higher standards of living.”
As an incentive to encourage the investment and job creation in Madisonville, the Kentucky Economic Development Finance Authority 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.