In a major investment that underscores Pennsylvania’s focus on manufacturing and economic growth, Flexopack USA Inc., a subsidiary of Greece-based Flexopack International Limited, has announced plans to establish its first American manufacturing facility in Lebanon County, Pennsylvania.
With a $33 million investment, the new facility is set to create at least 64 full-time jobs and further strengthen the state’s manufacturing and agriculture sectors.
The project is being supported by a $500,000 grant from the Pennsylvania Department of Community and Economic Development (DCED).
A New Manufacturing Hub for Flexopack USA
Flexopack’s move into the U.S. market will see the construction of a 107,000-square-foot facility at 3010 Hanford Drive in North Lebanon Township.
This new site will not only increase Flexopack’s production capabilities but will also allow the company to better serve its existing partner, Bell & Evans, a leading poultry producer based in Pennsylvania.
This facility represents the first phase of a planned three-phase project, laying the foundation for Flexopack’s growth in the U.S.
Why Lebanon County?
Lebanon County, situated in the heart of Pennsylvania, is an ideal location for Flexopack’s expansion due to its strong transportation infrastructure and proximity to major markets.
The new site, which is rail-served, will enable the efficient transport of raw materials and finished products. Additionally, the area’s skilled workforce aligns well with Flexopack’s needs, providing ample opportunities for local talent.
Flexopack CEO Stamatios Gkinosatis expressed enthusiasm for the company’s expansion into the U.S. by saying: “Our new manufacturing facility in Lebanon County aims to strengthen the already significant commercial presence of Flexopack Group in the U.S. market.
We are thrilled about our decision to proceed with this investment in Lebanon which will also further support — through local manufacturing — the increased packaging material requirements of our close partner Bell and Evans.”
Financial Support and Incentives
The $500,000 grant provided by the DCED is a critical component of the project’s financing.
Pennsylvania is also encouraging Flexopack to apply for additional financial support through programs such as the Manufacturing Tax Credit (MTC) program and the Rail Freight Assistance Program (RFAP), which will aid the facility’s construction and ongoing operations.
These incentives are part of Pennsylvania’s broader 10-year Economic Development Strategy, which emphasizes investments in the manufacturing and agriculture sectors.
DCED Secretary Rick Siger highlighted the importance of the Flexopack project within the state’s economic goals saying: “This project is a prime example of why the Shapiro Administration is focusing on the manufacturing and agriculture industries in Pennsylvania’s 10-year Economic Development Strategy.
We will continue to invest in companies like Flexopack to help strengthen these industries, grow our economy, and create real opportunities for Pennsylvanians.”
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What Flexopack Brings to the Table
Flexopack, known for its expertise in flexible packaging, primarily serves the food industry with co-extruded barrier and non-barrier films.
The company’s products are used for packaging various food items, including meat, poultry, cheese, and fish.
This new facility will enhance Flexopack’s capacity to produce these high-quality packaging materials locally, reducing the reliance on imports and shortening the supply chain.
Flexopack’s move aligns with the growing demand for sustainable and efficient packaging solutions in the U.S. food industry.
As a primary supplier for Bell & Evans, Flexopack will be able to meet the packaging demands of a critical client more effectively while also positioning itself as a prominent player in the U.S. market.
Economic and Employment Impact
The new manufacturing facility will have a notable impact on the Lebanon County economy, with the creation of at least 64 full-time positions.
These jobs will range across various functions, from skilled production roles to administrative positions, providing a range of opportunities for local residents.
Additionally, the investment will bring ancillary economic benefits to the region, with increased demand for services and infrastructure improvements.
Benefits for Local Workers
The facility’s arrival in Lebanon County will offer a welcome boost to the local job market, particularly for those with expertise in manufacturing and logistics.
With the current push to revitalize American manufacturing, Flexopack’s investment presents an opportunity for residents to work with an innovative, global company dedicated to sustainable packaging solutions.
By building a local production base, Flexopack will also contribute to the long-term economic resilience of Lebanon County, making it a more attractive destination for future manufacturing investments.
Future Phases and Outlook
The Lebanon County facility is just the beginning of Flexopack’s American journey. The project, planned in three phases, will enable the company to expand its capabilities over time.
While the initial phase focuses on establishing a strong manufacturing foundation, future phases may include additional production lines, new product offerings, and potentially further job creation as demand grows.
As Flexopack continues to invest in its U.S. footprint, it’s likely the company will play a significant role in Pennsylvania’s economic landscape for years to come.
With the support of local authorities and the backing of state-funded incentives, Flexopack is well-positioned to capitalize on the thriving U.S. food packaging market.
A Bright Future for Flexopack and Pennsylvania
Flexopack’s entry into the U.S. market through Lebanon County marks a significant step forward in the company’s global expansion.
This investment not only underscores the company’s commitment to serving its American clients but also reflects the appeal of Pennsylvania’s business environment.
As Flexopack progresses through the phases of this project, the company’s growth will be a testament to the collaborative efforts of international businesses and local authorities working towards shared prosperity.
