Amcor Ltd. plans to spend millions of dollars to upgrade an existing flexible packaging plant in Wisconsin, a move that's expected to increase employment by about 50 percent there.
Work on the $25 million project in Madison is expected to begin this year and stretch into 2019, the company said.
The effort will expand capacity, update technology and reduce waste, Amcor said. The addition is approximately 90,000 square feet.
Word of the Amcor expansion and modernization comes as the company works on the all-stock purchase of Bemis Co. Inc., a move that will further expand its presence in flexible packaging in the Americas.
Amcor's plant in Madison is described by company spokesman Mark Hein as one of the most versatile in company, with the ability to make a variety of packaging for industries including medical, pharmaceutical, food, home and personal care.
The facility dates back to 1972 and has been owned by Amcor since 2004. The 200,000-square-foot location previously had about 135 employees, but will increase to more than 200 with the improvements as well as the recent addition of a third shift. With the added shift, employment is at about 165 now, the company said.
New construction is taking place in an area previously used for parking at the site that has literally been outgrown by the company.
The $25 million project includes about $12 million to for new equipment that's already been ordered. That equipment is expected to be installed in the spring.
“The planned investment includes the acquisition of new machinery and updates to existing infrastructure to enable expanded service offerings for customers,” the company said in a statement.
In August, Amcor revealed a plan to acquire flexible packaging maker Bemis in a deal that will result in Amcor shareholders controlling 71 percent of the combined company. Shareholders of Neenah, Wis.-based Bemis will hold the other 29 percent.
Amcor expects that 150 construction jobs will be created during the course of the project.