By Catherine Amos
camos@registerbee.com
(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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