Plastipak Packaging Inc. of Plymouth, Mich., plans to expand its 1 million-square-foot blow molding plant in Jackson Center, Ohio, by fall. Officials are not sure how much the plant will grow, but they expect to add four or five lines and about 150 jobs in the expansion, which will cost $55 million to $65 million, said company spokesman John Lenhart.
Plastipak has lucrative contracts with Procter & Gamble Co. and PepsiCo Inc., as well as a long-standing relationship with the two, to thank for the expansion, he said.
"Plastipak has grown continually since 1967. Our annual growth is 10-12 percent per year," Lenhart said by telephone from Jackson Center.
Lenhart said he could not elaborate on the value of the long-term contracts with either company.
The Ohio plant expansion follows, but is not related to, the December 1998, $3.4 million purchase of competitor Suiza Packaging Group's Lima, Ohio, plant. Before the purchase, that plant had lost a large contract to Plastipak to supply blow molded bottles to P&G.
The Jackson Center plant will continue to produce containers for detergent, household cleaners, food and beverages. Lenhart did not provide sales figures for the Jackson Center plant, but Plastipak placed fifth in Plastics News' 1999 blow molders ranking with $515 million in annual sales.
Lenhart said Plastipak operates plants in Ohio, Indiana, Illinois, Kentucky, Maryland, Texas and South America. It employs about 4,000, he said.