Food-container maker Newspring Industrial Corp. will open its third plant by moving into a former injection molding facility in central Pennsylvania.
Newspring, a producer of plastic containers, lids and cutlery, will launch the new facility in Mount Carmel, Pa., by the end of October, said Dan Lee, plant manager for the facility, which will be called Mount Carmel Newspring Corp.
The company, based in Kearny, N.J., has been offered a state economic package worth $670,350 to reopen the facility, which closed in September 2001. The company is investing about $9.8 million to renovate the building and add injection molding equipment, according to Pennsylvania officials.
The site had been owned by Packaging Resources Inc. of Lake Forest, Ill. But after HuhtamÃ¤ki Americas acquired it in 2000, its new owners decided to close the 140,000-square-foot plant. About 155 workers lost their jobs.
Newspring's decision is ``great news for the area,'' said Megan Reedy, a spokeswoman with the Pennsylvania Department of Community and Economic Development in Harrisburg, Pa.
Founded by owner Jeffrey Chen in 1993, Newspring has grown by focusing on plastic food containers for takeout and delicatessen uses. The firm also makes a line of stackable portion cups and lids.
Newspring has plants in Kearny and Mississauga, Ontario, but needed another facility to handle growing demand, Lee said.
``We needed to find a plant with available land that was close to Kearny and made it easier for us to transport products,'' Lee said.
Newspring plans to hire 40 workers and bring in at least 43 more within the next three years, Lee said. The plant will start with six injection presses with clamping forces of 450-1,000 tons.