Essel Propack prepares for expansion
By Catherine Amos
(434) 791-7983
The Industrial Development Authority of Danville called an “emergency meeting” Tuesday afternoon to approve up to $40,000 for Essel Propack in potential construction and closing costs while the company expands its facilities.
City Attorney Clarke Whitfield said the IDA approved the guarantee of up to $40,000 “should the bill come due on some of the costs prior to closing.” The reason behind the emergency meeting was because the contractor had to commit Wednesday on building materials, Clarke said.
“If all goes well, then no money will be advanced by the IDA,” Clarke said.
Essel Propack is an India-based plastic tubing manufacturer for products such as toothpaste. The company’s Danville plant is one of four worldwide locations and the only United States plant.
Danny Malone, director of manufacturing for the Americas region, said the company was consolidating with Arista Tubes and expanding its local facility. The IDA currently owns the building Essel Propack occupies, Malone said, but they brought in a third-party developer for the new building and the city will no longer be the landlord.
“The city will benefit because they will get a debt obligation off their balance sheets,” Malone said. “We get the opportunity to expand our operation and invest some of the savings on the logistics costs.”
Construction will begin next week, Malone said, and he expected the company to make “very positive announcements” sometime in the next three to six months regarding job opportunities.
“Our goal is to grow and expand our business,” he said. “…We’re optimizing for the best possible warehouse storage space we can get on our current site and allow for expansion and business growth.”
Amos is a staff writer for the Danville Register & Bee.
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Reader Reactions
I guess Danville is more interested in toothpaste tubes, have not seen anything in regards to Medical-testing company LabCorp wants to consolidate its billing operations and could receive nearly $900,000 in taxpayer incentives if it chooses a site in Greensboro.
The Burlington-based company is reportedly considering moving its billing operations from 24 sites across the country to one location in Greensboro or in Danville, Va.. The move would bring 373 jobs to Greensboro.
The jobs would pay about $27,000 a year
I work for Essel, and although I agree with some of the comments about employees being lied to and temps working very long periods of time before being hired, I think most of the previous comments are from a very narrow point of view that doesn’t understand or consider the whole picture. First, I have never worked for any company that wasn’t guilty of lying to employees or not compensating well. As far as the expansion goes, if this needs to happen ASAP, the red tape of dealing with a corporate group in another country for funding just isn’t possible on such a tight dealine. We are aiding in getting the move done so that the business can grow in the future. With the economy the way it is now, we need to invest in growth opportunity. I think we should all be thankful for the employers that are left in this area rather than tearing them down.
PS- I have worked with some of these temps that are being referred to, and it is commonplace to go through 8-10 temps that can’t show up on time, much less work anywhere near their potential, before finding a good hire candidate. That is most likely where the “a dime a dozen” comment originated.
I am a former employee of Arista. I was hired and lied to from the start by the people in charge (Essel employees got us started). I wound up quitting but I have talked to some of the employees that stayed from the start. From what I understand, as of last year, they had never lived up to what the original plans were. I quit and got out early. I can only hope that with the expansion and combination that they can improve. Have they ever hired the number of positions that they originally stated to the media? Did they ever get the complete machines in place?
I do agree that if Essel Propack is owned by the richest group or family of people, then why do we have to help them out. Let them foot their own bills.
Danvilles other polypropylene factory also does everything through temps. Sure they save money, but it is hard on the people doing the work. Very low pay, no benefits, and no security whatsover. Even if they do an excellent job, they can be fired on the spot without a reason, just not called back up. Temp services can be good, but for long term jobs, they shouldn’t be involved at all.
New jobs there go from temp to hire, and I wish you all the luck in the world to get hired on permanently I did work there for a little while in there print shop as they say down there “temps are a dime a dozen” IT IS TOTALLY UNFAIR HOW THEY TREAT HARD WORKING TEMPS WITH FAMILIES!!!!!!!!!
I agree that we shouldn’t have to pay.
I heard that Arista sold their current building and made a profit, and now they are going to expand Essel to accomodate Arista.
Don’t know if this is true. If it is true,
Where is Adam?
Any guesses on new job numbers.
Essel Propack is owned by one of the richest people in the world, why would we have to pay a single dime for them to expand, I still don’t understand why we had to pay there light bill for the first year they were set up here, I guess thats how the rich get richer and the poor get poorer
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