jobs 300FRANKFORT, Ky. (12/9/19) — TPG Plastics LLC, which designs and manufactures engineered plastics and blow-molded products, plans to invest $14.3 million to open a facility in Murray, creating 75 Kentucky-resident jobs across the coming years, Gov. Bevin announced today.

“TPG Plastics’ announcement is tremendous news for Calloway County, as Kentucky continues putting its engineering and manufacturing excellence on display,” Gov. Bevin said. “Over the past four years, we have made historic strides in improving our business climate, and it’s exciting to see those efforts culminate in transformational job-creating projects. We are grateful that TPG chose Kentucky for its new operation and appreciate the opportunities it will provide to our citizens.”

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 percent 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, IL. 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.

Sen. Stan Humphries, of Cadiz, said TPG Plastics’ new facility demonstrates the company’s ability to adapt in an ever-changing industry.

“With the ongoing development of new products and technology, it is great to see TPG Plastics is doing what it takes to stay up to date with the rapidly changing automotive market and manufacturing industry,” Sen. Humphries said. “I look forward to the new and innovative job opportunities this major investment will bring to Murray.”

Rep. Larry Elkins, of Murray, said the company will help create more opportunities for the area moving forward.

“This is a good step in the right direction for our community,” Rep. Elkins said. “TPG Plastics will be a great addition to our manufacturing base, providing jobs and serving as a partner in spurring even more economic development opportunities.”

Murray Mayor Bob Rogers said the company’s presence is a good first step in replacing jobs the community will lose as Briggs & Stratton shutters its Murray plant.

“The City of Murray welcomes TPG Plastics and looks forward to working with the company,” Mayor Rogers said. “As I understand it, the company first came here to look when they saw that the Briggs & Stratton closure was going to provide a readily available and highly productive workforce. Now, after working with the city, county and EDC, they are expanding here and bringing much needed good news to our community. This is a big step in replacing those Briggs jobs but we are not through. We will not stop until we are satisfied that everyone who wants a good job in Murray can find one.”

Calloway County Judge-Executive Kenny Imes said this project marks a great opportunity for the region.

“I don’t know of anyone in this community that has not been affected in some way by the closure of Briggs & Stratton. While their leaving certainly is a blow, it also is an opportunity,” Judge-Executive Imes said. “The workforce at Briggs has been an incredible success story and now these wonderful employees are our best sales tool. Murray and Calloway County will certainly work together for the good of all. This is a great way to start.”

Mark Manning, president of the Murray-Calloway Economic Development Corp., said the community put much effort into laying groundwork for this moment.

“I am truly excited about the future. For years we have been planning for a more diverse economy by developing the industrial park, building a spec building and recruiting those medium-sized companies that are the future,” Manning said. “A company like TPG is a perfect fit. They are innovating their products for the future and we see a tremendous opportunity for growth. We also see opportunities for local suppliers to provide services and goods. We welcome TPG to the community and look forward to a long and mutually prosperous relationship.

Heidi Smith, Tennessee Valley Authority general manager of global business, said the project creates new opportunities for residents of the region.

“TVA and West Kentucky Rural Electric Cooperative Corporation congratulate TPG Plastics LLC on its decision to locate and create new job opportunities in Murray, Kentucky,” Smith said. “TVA is committed to its mission of serving the people of the Valley by supporting new job creation, and we are proud to partner with the Kentucky Cabinet of Economic Development and the Murray-Calloway EDC to help further that mission.”

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 of:

Creation and maintenance of 75 Kentucky-resident, full-time jobs across 10 years
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. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.

For more information on TPG Plastics, visit www.TPGPlastics.com.

SurfKY News

sitelogosm© Copyright 2008 - 2020 SurfKY News Group, Inc. All rights reserved.
This material may not be published, broadcast, or rewritten without permission.

Click here to subscribe to receive daily updates by email.

Mostly Cloudy

21°F

McLean, KY

Mostly Cloudy

Humidity: 73%

Wind: 4.35 m/h

  • 20 Jan 2020

    Partly Cloudy 23°F 17°F

  • 21 Jan 2020

    Sunny 34°F 22°F

Weather brought to you by

Market Report brought to you by

Market Report

Stories Trending Today