January 10, 2014
News Release
Evansville, Ind. — Berry Plastics Corporation (NYSE: BERY) announced plans today to relocate equipment and related production from out-of-state locations to four Indiana manufacturing operations, creating up to 336 new jobs by the end of 2014.
“There’s a reason why manufacturing companies looking for a competitive advantage continue to choose Indiana,” said Governor Mike Pence. “As a state that works, Indiana offers a strong legacy in building products that are used around the world. We provide the knowledgeable workforce and low-cost business environment companies like Berry Plastics are seeking when they decide where to locate their next investment, proving why Indiana is a manufacturing leader.”
The company, which employs approximately 2,800 associates in Indiana and more than 15,000 worldwide, will invest more than $21 million for new infrastructure and equipment, and will also invest $10 million to transfer existing equipment from Berry Plastics facilities outside Indiana to its downtown Evansville, Evansville airport, Princeton and Richmond facilities. The company will begin filling new production jobs at these four Indiana locations early this year.
“The relocation of production equipment to Vanderburgh, Gibson and Wayne counties from other Berry facilities supports our restructuring efforts, announced in November 2013, to optimize our manufacturing operations, maximize production efficiencies and best service our customers,” said Jon Rich, chairman and chief executive officer of Berry Plastics. “We are extremely appreciative of Indiana’s city, county and state officials for their joint support of this initiative.”
Today’s Indiana expansion announcement is the company’s fourth in five years. In 2011, Berry Plastics announced plans to grow its world headquarters workforce in Evansville by 120 associates. That same year, it also made plans to add a $5 million production line to increase manufacturing capacity at its operations in Odon, Ind. In 2009, the company unveiled plans to hire 360 employees and invest $150 million to expand its thermoform operations and build an additional facility in Evansville, Ind.
Originally established in 1967 as Imperial Plastics, Berry Plastics has grown into a major manufacturer of plastic packaging including containers, bottles, closures, prescription vials, trash bags, duct tape and other packaging materials.
The Indiana Economic Development Corporation offered Berry Plastics Corporation up to $2,350,000 in conditional tax credits and up to $300,000 in training grants based on the company’s job creation plans. These incentives are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The city of Evansville will consider additional tax abatement at the request of the Growth Alliance for Greater Evansville.
“Berry Plastics continues to demonstrate its commitment to our city with another major expansion that will create hundreds of new production jobs at its Evansville facility. The partnership between the city and Berry Plastics has produced new investments exceeding $64 million and a total of 395 production jobs over the past two years,” said Evansville Mayor Lloyd Winnecke.
Berry Plastics’ announcement to expand in the Hoosier State adds to the recent good news about Indiana’s economy. In November, Indiana led the nation in its percentage of private sector job growth. It gained 25,300 private sector jobs that month, the largest one-month increase in the Hoosier State on record.
About Berry Plastics
Berry Plastics Group, Inc. is a leading provider of value-added plastic consumer packaging and engineered materials delivering high-quality customized solutions to our customers with annual net sales of $4.6 billion in fiscal 2013. With world headquarters in Evansville, Ind., the company’s common stock is listed on the New York Stock Exchange under the ticker symbol BERY. For additional information, visit the company’s website at www.berryplastics.com.
About IEDC
Created in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Mike Pence. Victor Smith serves as the Indiana Secretary of Commerce and Eric Doden is the president of the IEDC.
The IEDC oversees programs enacted by the General Assembly including tax credits, workforce training grants and public infrastructure assistance. All tax credits are performance-based. Therefore, companies must first invest in Indiana through job creation or capital investment before incentives are paid. A company who does not meet its full projections only receives a percentage of the incentives proportional to its actual investment. For more information about IEDC, visit www.iedc.in.gov.
Source: Indiana Economic Develop Corp.
I suppose this development will show Governor Pence he no longer needs to shift $1Billion in property tax collections from business equipment and inventory to individual tax payers because Berry just decided to move manufacturing equipment back to Indiana in the existing tax environmental…
Hmm, just a thought.
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