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NEWS
Company Announces $68 Million Investment To Expand Facilities
November 20, 2020

Klöckner Pentaplast Group (kp), a global leader in recycled content products and high-barrier protective packaging, has announced the company will invest a total of $68 million to expand its facilities in Louisa County and Wythe County, Virginia.

Klöckner Pentaplast Group is a global leader in rigid and flexible packaging and specialty film solutions, serving the pharmaceutical, medical device, food, beverage, and card markets, among others. With a broad portfolio of packaging and product films and services, Klöckner Pentaplast plays an integral role in the customer value chain by safeguarding product integrity, assuring safety and consumer health, improving sustainability, and protecting brand reputation. Founded in 1965 in Montabaur, Germany, Klöckner Pentaplast has operations in 18 countries and employs over 5,900 people worldwide in over 60 locations, including 32 production sites. The company established its first North American production facility in 1979 in Gordonsville, Virginia.

According to the announcement, the company will expand capacity at its operation at 3585 Klöckner Road in Gordonsville. The Louisa County facility manufactures pharmaceutical and medical device packaging films. Klöckner Pentaplast will also create 26 jobs at its Wythe County facility, located at 555 East Buck Avenue in Rural Retreat, which produces packaging films for the food and beverage industry.

“For kp, the investment strengthens our local footprint in Virginia, which has served as the company’s proud home and a mainstay in the community for several decades,” said Tracey Peacock, kp’s President of the Pharma, Health and Specialties Division. “Virginia is the ideal location to expand our facilities due to its proximity to customers, allowing us to conveniently serve them and to position the Gordonsville and Rural Retreat sites as Centers of Excellence for the company. This expansion will provide new capacity for both heat shrink sleeve films and our post-consumer recycled PET line, which we previously announced to serve our sustainable consumer and food packaging customer base. The new PET heat shrink sleeve film production line is expected to be fully operational in the third quarter of 2022.”

“Klöckner Pentaplast’s decision to deepen its roots in the Commonwealth underscores the importance of having strong infrastructure and a ready workforce to support the advanced manufacturing industry,” said Governor Northam in response to the announcement. “We are proud to continue a decades-long partnership with an innovative global manufacturer like kp, and we thank the company for its major investment, which will have a positive impact in Louisa and Wythe Counties and bolster Virginia’s ongoing recovery efforts.”

The Virginia Economic Development Partnership (VEDP) worked with Louisa County, Wythe County, the Joint Industrial Development Authority of Wythe County, the Town of Rural Retreat, and Virginia’s Industrial Advancement Alliance to secure the project for Virginia. Governor Northam approved a performance-based grant of $1.2 million from the Virginia Investment Performance program, an incentive that encourages capital investment by existing Virginia companies. The Virginia Tobacco Region Revitalization Commission approved $263,500 from the Tobacco Region Opportunity Fund for the Wythe County expansion. Funding and services to support Klöckner Pentaplast employee training activities will be provided through the Virginia Jobs Investment Program (VJIP) which is administered by VEDP.


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