Shapiro Administration Invests Half a Million Dollars in Flexopack USA to Build Company’s First American Manufacturing Facility in Lebanon County

The flexible package manufacturer, based in Greece, will build a new 107,000-square-foot facility in Lebanon County as part of its $33 million project.

The Shapiro Administration is focused on expanding Pennsylvania's manufacturing industry while continuing to create jobs throughout the Commonwealth.

Harrisburg, PA - Today, Governor Josh Shapiro announced a significant investment of $500,000 from the Commonwealth to support Flexopack USA Inc. in establishing its first American manufacturing facility in Pennsylvania. This project will inject $33 million into the local economy and create at least 64 new, full-time jobs in Lebanon County.

Based in Greece, Flexopack USA will construct a 107,000-square-foot, rail-served facility at 3010 Hanford Drive in North Lebanon Township, the first phase of a three-phase project. This initiative will expand the company's packaging product manufacturing footprint into the United States, including its role as the primary packaging supplier for Pennsylvania-based poultry company Bell & Evans.

"Pennsylvania is the best place in the country for businesses to grow, and I'm proud that Flexopack saw that when choosing the Commonwealth for its first U.S. manufacturing facility," said Governor Shapiro. "I'm highly competitive, and I'm thrilled that our strong manufacturing and agriculture sectors helped us secure this project over Texas. We're committed to making meaningful investments in our private sector to position Pennsylvania as an economic leader, create jobs, and bring manufacturing back to the United States."

The company received a funding proposal from the Department of Community and Economic Development (DCED) for a $500,000 Pennsylvania First grant. The company was also encouraged to apply for the Manufacturing Tax Credit program (MTC), and the Rail Freight Assistance program (RFAP) through the Pennsylvania Department of Transportation (PennDOT).

"This project is a prime example of why the Shapiro Administration is focusing on the manufacturing and agriculture industries in Pennsylvania's 10-year Economic Development Strategy," said DCED Secretary Rick Siger. "We will continue to invest in companies like Flexopack to help strengthen these industries, grow our economy, and create real opportunity for Pennsylvanians."

Manufacturing, which accounts for more than $116 billion in gross state product, and agriculture, which contributes $132.5 billion annually to Pennsylvania's economy, both play a crucial role in our Commonwealth's economy and are included in the five key industries highlighted in Governor Shapiro's Economic Development Strategy.

"Keeping the supply chain short keeps more Pennsylvania dollars here at home," said Agriculture Secretary Russell Redding. "Investing to bring a major food-packaging manufacturer here is a huge win for our food producers, for the communities they support, and for Pennsylvania."

Flexopack, a subsidiary of Greek manufacturer Flexopack International Limited, is a wholesale distributor of flexible packaging with special emphasis in co-extrusion of barrier and non-barrier films. Flexopack's primary market is the food industry, with emphasis in meat, poultry, cheese, and fish.

"Our new manufacturing facility in Lebanon County aims to strengthen the already significant commercial presence of Flexopack Group in the U.S. market," said Stamatios Gkinosatis, CEO, Flexopack S.A. "We are thrilled about our decision to proceed with this investment in Lebanon which will also further support - through local manufacturing - the increased packaging material requirements of our close partner Bell and Evans. I would like to take this opportunity to personally thank my friend and partner Scott Sechler for the great and continuous support in our investment in Lebanon. Our cooperation with the local authorities of Lebanon and the Commonwealth of Pennsylvania has been excellent and as foreign investors we are very pleased with the warm welcome that we have received."

"Bell & Evans is proud to have Flexopack as a vendor partner for over 10 years." said Scott Sechler, Sr, Owner and Chairman, Bell & Evans. "Being a family-owned supplier, their focus on high quality, consistent materials align exceptionally well with Bell & Evans and our premium brand. We look forward to our continued long-term partnership and are thrilled to support them in their first USA facility, right here in Lebanon County, Pennsylvania."

Since taking office, the Shapiro Administration has secured and announced over $2 billion in private sector investments.

"The Lebanon Valley Economic Development Corporation is pleased that Flexopack chose the Lebanon Rails Business Park for their expansion," said Susan Eberly, President and CEO, Lebanon Valley Economic Development Corporation (LVEDC). "The land is owned by the LVEDC, and has the proper infrastructure, which helped to make this project happen. Recruiting a company that was seeking rail makes the deal even sweeter. We are happy we could help bring this project to the area."

The 2024-25 bipartisan budget delivers on Governor Shapiro's key priorities to make Pennsylvania more competitive economically and includes:

• $500 million for site development, including $400 million for the PA SITES (Pennsylvania Strategic Investments to Enhance Sites) program
• $20 million for the Main Street Matters program to support small businesses and commercial corridors that are the backbone of communities across our Commonwealth
• $20 million million in state funding for small minority-owned businesses in Pennsylvania
• $15 million for tourism marketing to boost our economy, attract more visitors, and support good-paying jobs - building on the Governor's launch of the Great American Getaway brand to encourage tens of millions within a few hours' drive to visit Pennsylvania

You can read Pennsylvania's first economic development strategy in 20 years and how Governor Shapiro's budget will create economic opportunity for all Pennsylvanians.

For more information about the Pennsylvania Industrial Development Authority or the Department of Community and Economic Development, visit DCED website, and be sure to stay up-to-date with all of our agency news on Facebook, X, and LinkedIn.

MEDIA CONTACT:
Governor's Press Office, [email protected]

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