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Genpak LLC, a manufacturer of food-service packaging items, plans to invest $22 million to expand its operations in Cedar City.
The company, which produces items such as foam and plastic hinged containers, has operated a plant in Cedar City since 1994. It wants to add additional warehousing and distribution facilities, said Brennan Wood, economic development director for the Iron County community.
"They have maxed out their existing plant and want to purchase an existing 215,000-square-foot warehouse adjacent to their operations," Brennan said, indicating the expansion eventually could include additional manufacturing capability.
In a statement issued by the Governor's Office of Economic Development (GOED), Genpak's Vice President of Operations Tim O'Connor said the company has maintained a strong partnership with the city, state and county in the 15 years it has been in Utah.
"Our workforce in Utah is second to none, and we hope to remain a strong employer in this area for many years to come," he said.
Genpak operates 12 plants in the United States and five in Canada. Its Cedar City facility is its westernmost facility.
GOED said the new Genpak project is expected to generate 125 new jobs over the next five years.
The GOED Board on Thursday offered Genpak a "post-performance incentive" of $114,813. The tax credit will be available to the company in stages as it incrementally adds employees to its payroll over the next five years.
The expansion will be the fifth undertaken by Genpak since it opened its doors in Cedar City, Brennan said. "Any additional jobs in this tough economic environment are good news," Brennan said, noting that Iron County's unemployment rate is hovering around 9 percent, well above the state average.
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