Arista, which is the leading manufacturer of plastic tubes in the UK, says the facility will be the first in the US and the second for Indian parent company Essel Propack, which already has a plant in Danville that also makes plastic tubes.
The company says that the new Danville facility will initially occupy 112,000 sq. ft. of a 152,000 sq-ft brown field site that will create 145 jobs following a total investment estimated to be $24m. Originally it had been scheduled to open by the end of 2006, but the opening time has now been postponed to March 2007.
Ashok Goel, vice chairman & managing director of Essel Propack, said of the investment, "This is a major step in our strategic plan for growth in plastic tubes globally and for growth in the US market. Plastic tube is our Second Horizon for growth, after laminated tubes. We foresee a great future in plastic tubes."
Arista COO, R. Chandrasekhar, said that the facility would feature state-of-the-art production technology, but in certain areas, such as heading, he said the company would be employing breakthrough technologies.
The move forms part of efforts by the State of Virginia and the city of Danville to attract light industry to the region, which has also managed to attract another packaging company, Shorewood Packaging.
As well as Shorewood other companies that have invested in the region recently include Hobby Lobby Luna Nanoworks and Nestle.
Essel Propack currently claims to be the largest manufacturer of seamless tubes in the world. It supplies the cosmetics, personal care and oral care categories and has recently branched out into the medical care segment.
Currently its market reach extends to 24 plants in 14 countries, which is about to be increased with the addition of the company's first ever tube manufacturing facility in Poland, due to be opened at the end of this year.