TPG Plastics was formed in March of 2018 to acquire the assets of The Plastics Group Inc. in Willowbrook, IL. The Plastics Group, which was founded in 1998, was a successor to Borse Industries Inc., with its roots dating back to the 1960's. TPG Plastics currently maintains a total of 18 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. They also manufacture a range of oil drain pans, funnels, and related products for the automotive DIY, lawn, and garden markets.
Opening up the Murray location will expand TPG's reach and 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 will also geographically position TPG in close proximity to markets it expects to enter, such as marine and recreational vehicles.
For their first Kentucky operation, the company is leasing the Murray West Spec Building to house the operation. The 62,000-square-foot building, which was completed in early 2018 and designed specifically for advanced manufacturing, is located in the Murray West Industrial Park and is expandable up to 200,000 square feet. Once the 20-year lease term is up, the Murray-Calloway Economic Development Corporation will convey ownership of the facility to TPG.
Murray Mayor Bob Rogers says the 75 jobs won't replace the 600 they lost, but says it's certainly a start, "we're hoping that we can attract more plants and companies of this size." Rogers continued, "They might be expanding that business or other businesses similar. They indicated we shouldn't be surprised if they double the size of this building within a year or so. Let's hope that's right."
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 many years.
In a 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 of 2020. TPG also plans to add injection molding capability in the second quarter of 2020 in order to extend their product line.
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.
You can learn more about TPG Plastics at the link below.
On the Net:
TPG Plastics
