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Paperworks announces new manufacturing facility in Alexandria

photo courtesy of paperworks.com
Wednesday, November 20, 2013 - 11:06am

Governor Bobby Jindal and Executive Vice President Joe Moynihan of PaperWorks Industries announced the company will relocate its carton-finishing operations from New York to Alexandria, creating 43 new direct jobs. The company will invest $1.6 million to renovate an existing industrial building for the operations.

In addition to the direct jobs, LED estimates the project will result in another 178 indirect jobs, for a total of 221 new jobs in Louisiana’s Central Region. The company estimates 21 construction jobs will be created by the project, which will support the Pineville, La., operations of PaperWorks’ largest customer, Procter & Gamble.

Gov. Jindal said, “The relocation of PaperWorks’ carton-finishing operations from New York to our state is a testament to the strength of Louisiana’s thriving business climate. Our world-class infrastructure and talented workforce are creating an environment that allows companies like PaperWorks Industries to invest, grow and create great jobs for Louisianians. The close proximity to P&G, a major PaperWorks client, will create great new collaboration opportunities for the company, and we’re proud that PaperWorks is beginning a new chapter here in Louisiana.”

PaperWorks will lease 116,000 square feet of manufacturing space at the McKesson Building, located at 2800 South MacArthur Drive in Alexandria. There, PaperWorks will fold and glue paperboard carton components for Procter & Gamble, providing packaging for the company’s dry laundry powder division. Performing the folding and gluing operation at the new Alexandria facility will provide cost savings for both PaperWorks and Procter & Gamble.

“PaperWorks selected the Alexandria location in order to be in close proximity with the Procter & Gamble manufacturing site in Pineville, further enhancing our decades-long relationship,” said Moynihan, who oversees the PaperWorks Packaging Group. “The pre-printed carton blanks will be folded and glued on two high-speed finishing lines and delivered in a just-in-time manner to meet P&G’s production demands. The tremendous support that we have received from both the state and local economic development communities has only served to reinforce our decision. We are anxious to tap into Alexandria’s abundant resources and become part of the local fabric.”

In 2012, the State of Louisiana announced a pair of Procter & Gamble expansions in Pineville – one $100 million project that enabled production of P&G’s Tide Pods brand and a second that added a $28 million capital expansion for dry laundry products. Those projects combined to create 155 new direct P&G jobs and will result in an estimated 837 new indirect jobs in the region. In 2009, the State of Louisiana and local partners combined to announce $3.3 million in road infrastructure improvements at Coughlin Industrial Park in Pineville, where P&G and other suppliers are located, to improve access and logistics for the companies.

PaperWorks Industries represents the latest P&G-related project announced in the Central Region of Louisiana, and LED’s Business Expansion and Retention Group, or BERG, began working with PaperWorks on the project in June 2013. To secure the project, Louisiana offered the company a competitive incentive package that includes a $125,000 award from the state’s Economic Development Award Program, as well as the services of LED FastStart® – the nation’s No. 1-ranked state workforce training program. PaperWorks Industries also is expected to utilize the state’s Quality Jobs and Industrial Tax Exemption programs.

“I am happy that we could help PaperWorks find a place to call home in Central Louisiana and bring more than 40 new jobs to our community,” Alexandria Mayor Jacques Roy said. “This is a tremendous opportunity for us, not only for new jobs and new business, but also to support the continued success of Procter & Gamble. We welcome PaperWorks and look forward to its great future here in Alexandria.”

Renovation of the manufacturing facility will take place in two phases. PaperWorks expects to complete the first phase, which will enable the shipping and receiving of supplies, in mid-December. The facility will begin receiving shipments by mid-January 2014. The second phase will include the installation of folding and gluing production lines and will be completed in February 2014. Full operations will begin soon after, and hiring of the 43 direct jobs will be completed by mid-March 2014.

“PaperWorks is a fine addition to the Central Louisiana business landscape,” said President and CEO Jim Clinton of the Central Louisiana Economic Development Alliance. “Its decision to locate here underscores the continuing and growing importance of Procter & Gamble in our business community. I particularly want to thank the City of Alexandria and the Greater Alexandria Economic Development Authority (GAEDA) for their timely, substantive support in bringing PaperWorks to the region.”

In addition to the state incentives, the Greater Alexandria Economic Development Authority will provide PaperWorks with a performance-based grant in the amount of $150,000. The grant will be distributed in three annual payments of $50,000, subject to PaperWorks meeting specific employment and salary levels.

“The Greater Alexandria Economic Development Authority is pleased to partner with the City of Alexandria, the State of Louisiana and CLEDA in the creation of over 40 great jobs for our citizens,” said GAEDA Board Chairman James Woodley. “GAEDA is proud to have played a role in attracting a well-respected company like PaperWorks to our region. This is a great win for the City of Alexandria and Central Louisiana.”

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