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Area Development - Site Selection, Facility Planning and Workforce Development

Canada-Based E. Hofmann Packaging Plans Madisonville, Kentucky, Operations

07/01/2025
Canada-based E. Hofmann Packaging, a plastics packaging producer, plans to establish operations in Madisonville, Kentucky. The $43 million project is expected to create 164 jobs in Hopkins County.

The investment will include the construction of a new 100,000-square-foot production facility. Operations are scheduled to begin in 2026.

“We are thrilled to announce the opening of our new state-of-the-art factory in Madisonville, marking a significant milestone as our first U.S. facility,” said E. Hofmann Plastics President and CEO Paul Kalia. “We are deeply honored to join this vibrant community and tap into its talented workforce. The enthusiastic support and collaboration from local and state authorities have been exceptional, making this expansion a reality. This facility strengthens our commitment to becoming a leading player in the North American market, and we look forward to building lasting relationships and driving economic growth in Madisonville.”

To support the project the Kentucky Economic Development Finance Authority preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $2.3 million in tax incentives based on the company’s investment of $43 million and annual targets of: creation and maintenance of 164 Kentucky-resident, full-time jobs across 15 years; and paying an average hourly wage of $28, including benefits, across those jobs.

Additionally, KEDFA approved E. Hofmann Packaging for up to $300,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

“Team Kentucky’s manufacturing sector continues to play a major role in our state’s soaring economy,” noted Governor Andy Beshear. “Once again, a quality international company has chosen to expand and do business in our New Kentucky Home, taking advantage of our unique location and talented workforce. I want to thank the leadership of E. Hofmann Packaging for their belief in this great state and look forward to their future success in Hopkins County.”

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments. In addition, E. Hofmann Packaging can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

“It’s been an honor to work alongside our partners throughout the entire process of bringing E. Hofmann Plastics to Madisonville,” added Bill Rudd, outgoing president of the Madisonville-Hopkins County Economic Development Corp. “As a family-owned company that truly invests in its communities and values its people, Hofmann represents exactly the kind of employer we strive to attract. Their impressive growth – doubling sales in just a few years through smart automation – hasn’t just improved efficiency, it’s created more opportunities to reward their employees. That commitment to both innovation and people make them a tremendous addition to our community.”

E. Hofmann Packaging USA LLC, a wholly owned subsidiary of E. Hofmann Plastics Inc., specializes in rigid plastic packaging and focuses on injection molding, thermoforming, and coextrusion, serving both the food and industrial sectors.

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