AB Group Packaging Inc., a 30-year-old paper bag and flexible packaging producer with plants in Ireland, Spain and the United Kingdom, will open its first U.S. plant in Delaware in the near future.
Last week, DelawareBusinessDaily.com reported on plans by AB for a site in Delaware. The company is based in Ireland.
Employment is expected to total 87 by 2017. Delaware Economic Development Office Director Alan Levin, said the company hopes to have some operations up and running next month.
No site has been announced. Levin said the company is looking at two existing buildings in New Castle County.
The company will receive a nearly $375,000 financial package and a $100,000 training grant from the state based on hiring the 87 employees and undertaking $4 million in capital improvements at their site. The request was approved Monday by the Council on Development Finance.
Gov. Jack Markell said the arrival of AB Group Packaging, which makes products for commercial retailers such as T.J. Maxx, Nike and Hard Rock Café; and industrial customers like Ball Packaging, Crown Cork and Weber Charcoal packaging, represents a win for Delaware on two fronts.
“I’m pleased that AB Group Packaging has chosen to make its in-demand products in Delaware. The kind of manufacturing jobs they create will help support long-term economic growth in a key industry,” Gov. Markell said. “With this plant, AB also joins a number of international companies that are expanding in or moving operations to our state – an important trend in today’s global economy.”
AB Group Packaging’s largest customer is Primark, which recently acquired eight shuttered Sears department stores in the Northeast. Primark’s acquisition factored into the decision to expand to the US.
The company has been experiencing significant growth in recent years. Five years ago, AB opened a plant in South Wales that started out with 34 employees.
Today, there are 90 people working there, and AB Group Packaging projects that there will be 200 employees at the facility in three years.
Dermot Brady, CEO of AB Group Packaging who founded the company with his father, said they will not stop until they accomplish the same success in Delaware. At the Newark area facility, workers will be making paper bags using innovative techniques and strategies.
“Delaware is a great state with great people. Our management team was completely bowled over by the ‘can do’ attitude, fantastic training centers and support structure in place,” Brady said. “We were looking for the very best America has to offer and believe we have found it here.”
“Mr. Brady is looking for people with the right attitude and work ethic. I believe that he will find that here in Delaware,” said Levin. “Delaware boasts a well-trained, highly skilled middle class workforce that can staff this round of hiring as well as any future expansions. I believe that this is the beginning of a long and fruitful partnership between our state and this outstanding company.”
Levin said AB continues a trend of European companies opening sites in the US.
