Henkel, a Germany-based manufacturer of laundry and home care, beauty care and adhesive products, will partner with its packaging supplier Austria-based ALPLA Inc. on a more than $130 million investment to enhance laundry detergent production in Bowling Green, Kentucky. The project is expected to create up to 60 full-time jobs.
The dual investment will create a 170,000-square-foot packaging operation on Henkel’s Bowling Green campus and cover the cost of equipment to support a new bottle production line. New technology also is expected to increase efficiency, create capacity for future growth and save on energy costs at Henkel’s facility.
ALPLA, which produces bottles from both low and high-density polyethylene, PET and other plastics, will manage hiring, specialized training and employee management at the new production line. The new packaging operation is expected to be operational by mid-2020.
In July 2018, ALPLA shared plans for a nearly $7 million, 100,000-square-foot expansion and the creation of 24 jobs to add warehousing space in Bowling Green. Henkel officials said the company invested more than $100 million over the past three years in its Bowling Green operation, in addition to today’s announcement.
“The United States is one of Henkel’s biggest and most important markets, and the company has continuously strengthened its position here through nearly $5 billion in investments over the past four years,” said Stephan Fuesti-Molnar, President, Henkel Consumer Goods North America. “This new investment at our flagship laundry detergent production facility will help us build on our strong market position in the US laundry market. With 70 percent of US households buying laundry and home care products made by Henkel, we are well positioned for sustainable long-term growth in the region.”
ALPLA’s CFO Philipp Lehner said, “ALPLA is a family owned business and has been manufacturing bottles for more than 60 years,” Lehner said. “We are pleased to build on our presence in the Bowling Green area and expand our 34-year global partnership with Henkel.”
Henkel operates three business sectors globally: adhesive technologies, beauty care and laundry and home care. The company operates facilities in 23 US states, and its Bowling Green operation is Henkel’s largest laundry plant nationally at more than 2 million square feet.
“Henkel and ALPLA have each been fantastic corporate citizens in Warren County, and their collaborative relationship with this project will create additional investment and job opportunities in the region,” Governor Matt Bevin said. “The ability to attract and grow companies with significant supply chains is a key factor in Kentucky’s robust economic growth and will continue to be a focal point for us going forward.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on June 27 preliminarily approved a 10-year incentive agreement with ALPLA under the Kentucky Business Investment program. The performance-based agreement can provide up to $900,000 in tax incentives based on the company’s investment of over $50 million and annual targets of creation and maintenance of 60 Kentucky-resident, full-time jobs across 10 years, while paying an average hourly wage of $33 including benefits across those jobs. In addition, ALPLA can receive resources from the Kentucky Skills Network.
Ron Bunch, President & CEO of the Bowling Green Area Chamber of Commerce said, “Henkel has been a major economic development engine in our community. Beyond their direct employment contribution and community service efforts, the investment partnership with ALPLA is a prime example of how the company’s supplier network, especially within the transportation and packaging sectors, further magnifies their economic impact locally.”