A fragrance and flavors company whose founder once left his home country because of political instability has found a palatable place to do business in Palestine.
Palestine, Texas, pronounced “pal-uh-steen”, is located southeast of Dallas-Fort Worth almost halfway to Houston, at the intersection of U.S. Highways 79 and 287 in the Piney Woods region of east Texas. That’s where Costa Rica-based Callizo Aromas aims to open its first U.S. facility by next year and eventually create 50 jobs.
In a release from Palestine Economic Development Corporation, Callizo Deputy CEO Santiago Callizo called the establishment of operations there “remarkably smooth, especially compared to our previous expansions in Latin America.”
Those previous expansions include divisional or corporate manufacturing, R&D and sales sites in Bogota, Colombia; Heredia and Tacares, Costa Rica; Guadalajara, Mexico; Ita, Paraguay; and Lima, Peru; with offices in Caracas, Venezuela; Quito, Ecuador; Santa Cruz, Bolivia; and Guatemala City, Guatemala.
“Callizo Aromas has its roots as a family enterprise, founded by my father in Venezuela in the early 1990s,” Santiago Callizo tells me by email. “His extensive background in the pharmaceutical industry, coupled with valuable experience gained from working with several multinational flavor and fragrance corporations, provided the foundation for our company’s inception. A pivotal moment in our company’s history occurred in 2002 when, in response to the political instability in Venezuela, the decision was made to relocate and establish operations in Costa Rica. This strategic move proved to be transformative, as Costa Rica subsequently became our global headquarters. From this new base, we successfully expanded our reach throughout the Latin American market.
“With a 30-year presence in Latin America across six countries, we have established a pattern of expanding our R&D and manufacturing capabilities to a new country every five years,” he explains. The growth there continues, with upcoming moves to Evolution Free Zone in Costa Rica and to Sector 62 Chilca Industrial in Lima. The methodical and sustained expansion, he says, allows his team “to build a deep understanding of diverse regional markets while maintaining our commitment to innovation and quality … Our journey from a single-country operation to a multinational enterprise with a presence in numerous Latin American countries underscores our adaptability, resilience, and commitment to growth. We believe this background positions us well for our anticipated expansion into the North American market.”
The stage was set for that expansion with the establishment of an R&D and manufacturing center in Guadalajara in 2020, strategically positioned to support future U.S. operations by 2025, Callizo says.
“In 2022, we conducted an initial exploratory trip to the United States, focusing on industrial properties in Tennessee, North Carolina, and Texas,” he says. “Our itinerary was primarily informed by opportunities identified through online industrial real estate platforms such as LoopNet and Crexi, prioritizing properties that offered a balance of favorable pricing and strategic location. Ultimately, we selected Palestine, Texas, due to its central location within the state and its proximity to our Guadalajara facility. Initially, we were unaware of state and local economic incentives until a fortuitous meeting with an economic development center in Tennessee during our property tour. This new information prompted a reassessment of our decision-making criteria. Despite the attractive incentives offered elsewhere, Palestine’s geographic advantages, climate, natural surroundings and the specific attributes of the available property ultimately solidified our decision.”
A Place to Move Goods
The history books and the city’s website say Palestine, Texas, designated the Anderson County seat in 1846, was named by early settler Daniel Parker to honor his former home of Palestine, Illinois, a village formed in 1811 near the Wabash River that is known as one of the oldest towns in the state and is also a county seat. According to the Advisory Council on Historic Preservation, “when French explorer John LaMotte came to the area in 1678, he named it Palestine after the land of milk and honey.” The two Palestines are among a baker’s dozen of Palestines across the United States.
Central location in its county and relative to various population centers has been the Texas city’s economic development calling card from the beginning, starting with shipping goods on the Trinity River and then by railroad when rail came to town in 1873. A Texas Main Street city, Palestine’s tourist attractions today include the Texas State Railroad, the state’s oldest heritage railroad.
Once highway infrastructure had been developed, Palestine’s location was ideal enough for Walmart to construct its first distribution center outside its home state of Arkansas in the area in the early 1980s, adding a second facility in 1994. Site Selection’s Conway Projects Database shows Walmart invested $21 million in an expansion in 2021. It’s one of several projects to land in the area in the past few years, including a $2.8 million manufacturing facility from Tahwahkaro Distilling (based in nearby Grapevine) and two projects from South Korea-based LS Mtron, which makes injection molding machines (IMMs) and tractors.
“Logistics warehousing and machine demonstrations for our IMMs in Texas is an important step for LS Mtron’s growth plans,” LS Mtron Injection Molding Machines USA President Peter Gardner said in a May news release. “In South Korea, LS Tractor production and LS injection molding production are co-located in the same factory campus — so it is a proven model for leveraging LS Mtron’s diverse manufacturing and financial strength to provide cost-effective solutions to our end users.”
Again, proximity to such robust markets as DFW and Houston was key.
“Shipping into the Port of Houston is cost-effective, and Palestine, Texas, is a great location for shipping machines to our customers in Texas and Mexico,” Gardner said. “In fact, one of our largest customers, US Merchants, is in Houston. We have many others, such as NICOR Inc., MVP Plastics and more in Texas as well as a large customer in base in Mexico, with over 1,000 machines installed.”
As with those projects, Santiago Callizo says local government has provided “exceptional assistance and guidance” and the Palestine Economic Development Corporation “has been instrumental in facilitating our establishment, serving as a liaison with local government entities and coordinating various aspects of our project, from construction permitting to workforce development initiatives.
“Despite the attractive incentives offered elsewhere, Palestine’s geographic advantages, climate, natural surroundings and the specific attributes of the available property ultimately solidified our decision.”
— Santiago Callizo, Deputy CEO, Callizo Aromas
“Their support has extended to providing crucial assistance with major expenditures in our renovation process, particularly in the area of fire suppression systems,” he continues. “This level of engagement and support has been truly remarkable for us, especially given our background in developing businesses in Latin America, where such incentives and assistance are often minimal or non-existent.”
The Texas facility will produce zootechnical products focused on animal nutrition and aromas that make pet feed more palatable to the animals, in addition to flavors and fragrances. Callizo even went so far as to conjure up a “harmonious blend of aromas” for the Palestine EDC to capture the essence of the region: “The top notes have a sweet floral aroma reminiscent of dogwood flowers, evoking the area’s natural beauty,” said the florid press release. “The middle notes have rich woody tones that reflect the surrounding forests and timber heritage. The base notes have subtle accents of herbal moss, with a gentle touch of leather, nodding to the region’s historical industries.”
Now the company is ready to make history in the business-friendly environment in Texas, “which has greatly facilitated our expansion into the U.S. market,” Callizo says. “The contrast between this experience and our previous endeavors has highlighted the significant advantages of establishing operations in a region that actively supports and encourages business development.” — Adam Bruns
