MURRAY, KY— TPG Plastics is planning to invest $14.3 million on a new facility in Murray, Ky. This would create 75 jobs.
Gov. Matt Bevin announced Monday the company will lease the 62,000-square-foot, Murray West Spec Building to house the operation.
“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.”
TPG founder and president of its parent company, Beaconhouse Capital Management, Saquib Toor says he's been contemplating opening a satellite location in the Southeastern U.S. for 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.”
TPG will introduce new plastics coextrusion manufacturing technology to meet and exceed the current emissions regulations.
Company leaders plan to install three initial coextrusion machines at the Murray location, with the first two expected in Feb. 2020. TPG also plans to add injection molding capability in the second quarter of 2020 to extend its production line.
The Murray location extends TPG's service range to the southern U.S. They say the Murray location will allow them to be within an eight-hour truck drive of the markets they expect to enter.
TPG Plastics was formed in March 2018. The company produces approximately 3 million containers annually for nationwide stores.
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.”
To encourage job growth, the Kentucky Economic Development Finance Authority 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 creating and the maintenance of 75 Kentucky-resident, full-time jobs across 10 years and paying an average hourly wage of $27 including benefits across those jobs.
By meeting its annual targets over the agreement term, the company may be eligible to keep some of the new tax revenue it creates.