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Paragon Films studying new plant location in Washington

By:

September 6, 2012

BROKEN ARROW, OKLA. (Sept. 6, 1:30 p.m. ET) — Stretch film extruder Paragon Films Inc. is looking to open a new manufacturing facility in Washington State.

The company is conducting feasibility analysis and has filed an environmental review application with the city of Union Gap, Wash., for an existing 100,000-square-foot plant, said David Spurlock, Union Gap’s development coordinator.

The building is located on 8.5 acres and is adjacent to a rail line. Part of the environmental review includes bringing in a rail spur to receive pellet shipments and building silos to hold raw material, Spurlock said.

At full production, the plant should employ 30 workers per shift, he said.

Though conducting studies is good sign, it’s no guarantee that Paragon will open a plant in Union Gap, he said, adding that the review process can take up to two months and the purchase could fall through for unrelated reasons.

Paragon is looking to expand capacity, but the company is still early in the expansion process and not quite ready to talk publicly, said Dave McFadden, president of the Yakima County (Washington) Development Association.

Both Spurlock and McFadden said they were cautiously optimistic about the possible new plant.

“You don’t file environmental permits to move into the facility if you’re just kicking tires,” McFadden said, adding that the permitting process is a significant investment of time, effort and money, and companies “just don’t do it for a maybe.”

Paragon did not return calls seeking comment Sept. 5.

Paragon, based in Broken Arrow, Okla., manufactures polyethylene roll and specialty films for the food packaging, industrial and agricultural markets. It operates two plants — in Broken Arrow and Taylorsville, N.C.— and had sales of $145 million in 2011, according to a recent Plastics News film and sheet industry survey.