Plastics Firms Drawn To Texas

Already one of the leading plastics-producing states, Texas continues to attract investment in this industry. The state ranks first in overall shipments (worth more than $35 billion) and is fifth in employment with about 98,000 workers, according to the Society of the Plastics Industry.

Orange Plastics, a California-based manufacturer of packaging products for supermarkets and department stores, is expanding into Abilene by moving into a spec building constructed by the Development Corporation of Abilene.

        Orange Plastics, a manufacturer of polyethylene packaging products, is opening a factory in Abilene and plans to create 239 jobs over the next three years. Based in Compton, Calif., the company will move into a 100,000-sq.-ft. (9,290-sq.-m.) spec manufacturing building built by the Development Corporation of Abilene (DCOA) in 2001. Orange Plastics, which also operates a plant in Crittenden, Kentucky, manufactures bags and films for the supermarket, retail, janitorial and industrial trades. Customers include Wal-Mart, Toys-R-Us, Sears, Taco Bell, Albertsons and Kroger.
        Salim Bana, president of Orange Plastics, says the Abilene location will allow the company to expand its customer base and add new markets. He says its central location eases distribution and receipt of supplies. The availability of a spec building, which could be finished out quickly, was a major site selection factor, he says. Orange began its site search in December 2000 and sifted through information on 150 cities across the U.S. Orange wanted an existing building with high ceilings. At the same time, DCOA was building its spec building, which happened to fit most of Orange's requirements. Now the DCOA is spending $9.5 million to complete the spec building and relocate machinery.
        In Mesquite, Texas, where the barbecue is right and the rodeo is rowdy, economic development has been surging of late. A look at a log of new plants and expansions over the last two years shows a record streak of investment in this city of about 130,000 on the eastern rim of the Metroplex.
        The largest recent manufacturing project in Mesquite is the Iris USA plant slated to open late this year. Iris USA is the U.S. subsidiary of Iris Ohyama of Japan, a plastics injection molding company.

Plastic products manufacturer Iris USA, a subsidiary of a Japanese company, chose Mesquite for its latest U.S. factory, primarily to be near one of its largest customers, The Container Store.

        Mack Shinagawa, Iris operations manager, says his company wanted to be in the Metroplex to be near the headquarters and distribution center of The Container Store, a major customer.
        Shinagawa, who will serve as plant manager when the new facility cranks up, sorted through about a dozen potential locations in the Metroplex over a two-month period. He says the site of the 266,000-sq.-ft. (24,700-sq.-m.) plant at the intersection of I-635 and Highway 80 offers ease of transportation.
        "That (proximity to major highways) was part of our consideration, but wasn't a major factor," he says. "It just so happened land was available there. We needed to have a facility in the Southwest and we looked at several sites in the Metroplex. From the start, we set our eyes on the Metroplex."
        Shinagawa says the plant will initially employ 50 and may increase that number to 70. It will produce plastic household goods such as organizers, business files and lawn, garden and pet products.
        Iris USA also has factories in Stockton, Calif., and Pleasant Prairie, Wis. The parent company operates seven plants in Japan, one in China and one in Europe.
        Tom Palmer, manager of economic development for the City of Mesquite, attributes growth to the Triple Free Port exemption which began in Janu ary 2000 and allows exemption from county, school district and city taxes for inventories shipped out of state in a specified period of days.
        "It's been the single most important driver on these deals," Palmer says.