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Canada-based Kruger Packaging Plans Hardin County, Kentucky, Manufacturing Operation

06/02/2021
Canada-based Kruger Packaging will undertake a $114.2 million investment to establish a state-of-the-art packaging manufacturing operation in Hardin County, Kentucky. The project is expected to create at least 150 jobs in the coming years.

The new 400,000-square-foot facility to be located at T.J. Patterson Industrial Park in Elizabethtown will operate under the name Kruger Packaging (USA) LLC and represents the company’s first corrugated box plant in the U.S.

“Kentucky’s pro-business climate was instrumental in our decision to invest in Hardin County, and we are grateful for the support we received from Governor Beshear, Team Kentucky and Elizabethtown-Hardin County to make today’s announcement a reality,” said Michael Lafave, senior vice president and chief operating officer of Kruger Packaging.

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $3.45 million in tax incentives based on the company’s investment of $114.2 million and annual targets of creation and maintenance of 147 Kentucky-resident, full-time jobs across 10 years and paying an average hourly wage of $32.50 including benefits across those jobs.

“This is a significant project for Elizabethtown and the commonwealth, and furthers the mission of the Kentucky agritech initiative to build a better future with higher paying jobs for Kentuckians,” Governor Andy Beshear said. “Kruger Packaging is creating nearly 150 quality job opportunities for our residents, and I want to thank the company for this commitment to our state. Kruger Packaging will be a strong employer in Central Kentucky for years to come, and I look forward to watching the company grow and help build a better future for Kentuckians.”

Additionally, KEDFA approved Kruger Packaging for up to $1.58 million 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.

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, the company can receive resources from the Kentucky Skills Network.

“At the Elizabethtown-Hardin County Industrial Foundation, we continue to focus our economic development efforts on jobs and wage growth,” said Greg Pawley, board chairman for the Elizabethtown-Hardin County Industrial Foundation. “The announcement of Kruger Packaging’s new facility in Elizabethtown is a major step toward that goal and will have an enormous impact on our region. I would like to offer Kruger Packaging a warm welcome to our community and thank all of our economic development partners for making this exciting announcement possible.”

Founded in 1904, Kruger Packaging’s parent company, Kruger Inc., is headquartered in Montréal, Canada, and produces 100% recycled containerboard products, corrugated packaging, tissue products, publication and specialty papers, renewable energy, cellulosic biomaterials and wines and spirits. The company also is a major North American recycler of paper and paperboard. Kruger operates 19 facilities across 10 sectors in Canada and the U.S., including locations in Maine, New York, North Carolina, Rhode Island, Tennessee and Virginia.

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