TPG Plastics, which designs and manufactures engineered plastics and blow-molded products, plans to invest $14.3 million to open a facility in Murray, Kentucky. The project is expected to create 75 jobs across the coming years.
For its first Kentucky operation, the company will lease the Murray West Spec Building to house the operation. Completed in early 2018 and designed specifically for advanced manufacturing, the 62,000-square-foot building is in the Murray West Industrial Park and is expandable up to 200,000 square feet. Upon concluding the 20-year lease term, the Murray-Calloway Economic Development Corporation will convey ownership of the facility to TPG.
Saquib Toor, TPG’s president and founder of its parent company, Beaconhouse Capital Management LLC, said TPG has contemplated opening a strategic satellite location in the Southeastern US for several years. “After an extensive search, we feel fortunate to have found this unique opportunity in Murray,” Toor said. “This expansion would not have been possible without the support of Murray Calloway Economic Development Corporation, the Tennessee Valley Authority, the West Kentucky Rural Electric Cooperative and the great Commonwealth of Kentucky. We are excited to expand in a vibrant college community that welcomes industry and facilitates collaboration among local manufacturers.”
In response to tightening emissions regulations nationally, TPG will introduce new plastics coextrusion manufacturing technology that will meet and exceed current requirements. Company leaders anticipate initially installing three coextrusion machines at the Murray location, with the first two expected to arrive in February 2020. Additionally, TPG plans to add injection molding capability in the second quarter of 2020 to extend its product line.
The Murray operation will expand TPG’s service range to customers and distribution centers in the southern US, and will be logistically capable of reaching 80% of the US population within an eight hour truck drive. The Murray location also geographically positions TPG in close proximity to markets it expects to enter, such as marine and recreational vehicles.
TPG Plastics was formed in March 2018 for the acquisition of the assets of The Plastics Group Inc. in Willowbrook, Illinois The Plastics Group, founded in 1998, was the successor to Borse Industries Inc., with roots dating back to the 1960s. Currently, TPG Plastics maintains a total of 17 blow molding presses, nine of which are in active production of portable fuel containers.
The company produces approximately 3 million containers annually for distribution nationwide to big box stores, dollar stores, and automotive retailers. It also manufactures a range of oil drain pans, funnels, and related products for the automotive DIY and lawn and garden markets.
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in October preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $1 million in tax incentives based on the company’s investment of $14.3 million and annual targets which include creation and maintenance of 75 Kentucky-resident, full-time jobs across 10 years and paying an average hourly wage of $27 including benefits across those jobs.
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, TPG Plastics can receive resources from the Kentucky Skills Network.
Written by: Area Development News Desk Click HERE for article