The ribbon was cut Friday on AB Group Packaging’s new site off Ogletown Road amid signs that manufacturing is staging a modest comeback in the state.
On the same day, the March unemployment report showed Delaware has gained 800 jobs over the past year in manufacturing after seeing several years of losses or no growth. The state’s jobless rate fell to 4.4 percent in March.
The ceremony at the site near Newark included Anne Anderson, Irish Ambassador to the U.S., U.S. Sen. Chris Coons, Delaware Economic Development Office (DEDO) Director Bernice Whaley, and AB Group Packaging, Inc. founder and CEO Dermot Brady. AB’s plans were first announced last year.
The Irish company, a 30-year-old paper bag and flexible packaging producer, already has plants in Ireland, Spain and the United Kingdom.
Its U.S. plant in Newark plans to add 87 new full-time jobs in Delaware by 2017.
“I am delighted to see this further evidence of the deepening economic relationship between Ireland and the U.S., and how it works to our mutual benefit,” said Anderson. “We have long welcomed job creation by U.S. companies in Ireland, and now increasingly we are seeing successful and innovative Irish companies creating high-quality jobs in the U.S. I am confident that AB Packaging will see its U.S. business grow and thrive in Delaware.”
Anderson went on to take note of the ties between the First State and Ireland that date back to colonial times and include the Irish workforce at DuPont’s original powder mill.
The small size of Delaware and Ireland also require both to work harder when it comes to the economy, she said, adding that the Irish economy is currently the most robust in Europe.
Markell said the arrival of AB Group Packaging, which makes paper shopping bags and tissue for commercial retailers such as Primark, T.J. Maxx, Nike, Vodafone, and Tommy Hilfiger represents a win for Delaware.
“The kind of manufacturing jobs they have created supports long-term economic growth in a key industry,” 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.”
Markell also praised Patty Cannon of the Delaware Economic Development Office for going the extra mile in working with AB that included returning a laptop computer that Brady had left during a site trip in Delaware.
Late last year, Primark, one of AB Group Packaging’s largest customers, opened its first two U.S. stores — one at the old Filene’s store in Boston and another at the King of Prussia Mall in Pennsylvania. Primark’s entry into the U.S. market, in addition to over 470 stores in Europe, drove AB to seek a U.S. presence. Primark is based in Ireland.
AB has been experiencing rowth in recent years. Just over five years ago, the company opened a plant in South Wales that started out with 34 employees.
AB Group Packaging now projects that the plant in Wales will have 200 employees at the facility in three years.
At the Newark facility, workers will make next generation renewable paper shopping bags and industrial packaging products — using innovative techniques and environmentally responsible and sustainable materials from certified sustainably managed forests.
“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 in Delaware.”
Brady said he toured sites in a number of states and none came close to offering the advantages of Delaware.
“We are pleased that AB Group Packaging chose Delaware as the home for its very first U.S. location,” said Bernice Whaley, Director of the Delaware Economic Development Office. “Delaware has well-trained, highly skilled workforce to offer now, as well as for any future expansions. We look forward to continuing the dynamic partnership between our state and this outstanding company.”
Markell said in brief remarks after the event that the Delaware job market is strong but added that we “don’t take anything for granted.”
Sen. Coons noted that Newark has a history of being a manufacturing center that produced fiber, fabric paper and other goods in the past 150 years.
Prior to his political career, Coons worked at W.L. Gore and Associates, which was founded in Newark and became a worldwide company. He is a member of the Gore family.
