Cabinet for Economic Development
Gov. Beshear Participates in Ground Blessing for Indian-owned Flex Films Manufacturing
Phased investment totaling at least $180 million and 250 projected new jobs a result of Governor’s economic development trips to India
ELIZABETHTOWN, Ky. (Oct. 28, 2011) –Governor Steve Beshear today joined community leaders and Flex Films officials in Elizabethtown to take part in a ground blessing ceremony in preparation for the flexible packaging company’s first U.S. manufacturing plant. The project, which will occur in two phases, stems from Gov. Beshear’s first economic development trip to India in the fall of 2010.
Flex Films garnered interest in the Commonwealth after learning about the Governor’s efforts to increase foreign direct investment opportunities for Indian companies in Kentucky. The company made its first site visit to Kentucky in January and finalized its decision to locate in Elizabethtown after meeting with Gov. Beshear on a second visit to India in the spring.
The blessing ceremony is a traditional service in India for new homes, businesses or other facilities. To show partnership in the new endeavor, both Flex Films executives and state and local officials participated in the ceremony.
“Today’s ground blessing ceremony is an exciting step toward the opening of Flex Film’s first U.S. facility, one that represents at least 250 new jobs and a $180 million capital investment in Kentucky,” Gov. Beshear said. “Our efforts to attract companies from all over the world are paying off, and today is proof of that success.”
The project will initially create 125 new jobs and a $90 million investment, ultimately doubling in scope for a total investment of at least $180 million and 250 jobs. Flex Films has indicated that the first phase of the project will be operational by the end of 2012. The second phase would begin shortly thereafter.
Established in 1983, the multi-faceted organization UFLEX Ltd. is a leading manufacturer of polyester chips, specialty films, coated and metalized film, laminates, pouches, holographic films, gravure cylinders, flexographic plates, inks and adhesives to all types of packaging and printing/converting machines, offering total flexible packaging solutions. Flex Films, the Global Films Business arm of the UFLEX Group currently operates state-of-the-art manufacturing facilities in India, Dubai, Mexico and Egypt and is setting up another operation in Poland. It has also established offices all over the world and has a market presence in 110 countries.
“We are very excited to take our relationship with the Commonwealth of Kentucky to the next level. Our core philosophy continues to be that we will give freshly produced materials to our American customer friends just in time and ask them to keep their money in the bank and not in warehouse,” said Pradeep Tyle, CEO of Flex Films. “We are driven by a firm conviction that what we sell is service, and therefore, it has long been our cherished ambition to set up a premium manufacturing facility in the heartland of the USA, which is the world’s largest and most advanced Packaging market.
“We absolutely believe that, despite the economic slowdown, there is immense potential for growth in flexible packaging film demand here, and we can actively drive this growth by delivering high-quality films, innovation and suitable market development programs. It is an honor for us to be associated with the wonderful people of Kentucky, and I am looking forward to this plant becoming a shining jewel in our crown.”
To make this investment possible, the Kentucky Economic Development Finance Authority preliminarily approved UFLEX for tax incentives up to $20 million through the Kentucky Business Investment program. The performance-based incentive allows the company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.
“This is an exciting development for our community and our state,” said Sen. Dennis Parrett, of Elizabethtown. “These 250 new jobs will provide a boost to our economy and offer new opportunities for our workforce. Flex Films is exactly the kind of creative company that we want to recruit to enhance our position as a prime location for innovative business and industry. We look forward to having Flex Film’s first United States packing company here in Elizabethtown. Gov. Beshear shows his continued leadership in job creation to seek out and support this excellent new addition to our community.”
“Flex Films has already had a tremendous impact on our region, giving us an economic boost when we needed it the most,” said Rep. Jimmie Lee, of Elizabethtown. “I want to thank Gov. Beshear and the other state and local officials who worked so closely together to help make this possible. This company has a very bright future here in the Commonwealth, and today’s ceremony is a major step in that direction.”
“We are excited about this excellent opportunity to create yet another long-term relationship with an international corporation right here in Hardin County,” said Hardin County Judge-Executive Harry L. Berry. “The more than $180 million in construction and 250 jobs UFLEX brings through this project to our county is a big boost to continuing the strong economic growth within this region. We are very pleased Flex Films chose our community to be their first manufacturing venture in the United States. We look forward to decades of our continued partnership and growth.”
“It is a great day for Elizabethtown,” said Elizabethtown Mayor Tim Walker. “We are very excited to have UFLEX locate here in our industrial park. We are also very proud to be home to the first manufacturing Greenfield project by an Indian company in the U.S. On behalf of the city of Elizabethtown, welcome to the community!”
For more information on Flex Films, visit http://www.flexfilm.com.
Information on Kentucky’s economic development efforts and programs is available at www.ThinkKentucky.com.Fans of the Cabinet for Economic Development can also join the discussion on Facebook at www.Facebook.com/ThinkKentucky or follow on Twitter at www.Twitter.com/ThinkKentucky.
A detailed community profile for Elizabethtown (Hardin County) can be viewed at http://thinkkentucky.com/EDIS/cmnty/index.aspx?cw=003.