Governor Kaine Announces $14 Million Essel Propack Expansion, 35 New Jobs in Danville

RICHMOND - Governor Timothy M. Kaine today announced that Essel Propack, an India-based manufacturer of laminated and plastic tubes for the oral, cosmetic and healthcare industry, will invest $14 million to expand the capacity of the Essel Propack facility and create a state-of-the-art printing center to support both Essel Propack and its subsidiary, Arista Tubes, which is also located in Danville. The expansion will create about 35 new jobs. The announcement came at the conclusion of a Virginia trade mission to India.

“Essel Propack has such a great story to tell,” said Governor Kaine. “Since its initial opening in Danville in 2002, this company has flourished in Southside, and it serves as a great example of what can be accomplished in Virginia. Members of my delegation met with company officials on my behalf in Mumbai, and committed Virginia’s continued support to the company’s future growth and investment in the Commonwealth. I congratulate Essel Propack on their success.”

The investment will include equipment and building upgrades at the Danville facility to accommodate the addition of two new tube production lines, new generation state-of-the-art combination print presses, pre-graphic facilities, a new print production facility near its Arista factory, improved warehousing systems and enlarged office areas. The City of Danville assisted Essel Propack with its decision to expand.

Announcing the expansion plans for the U.S. market in Mumbai, Ashok Goel, Vice Chairman & Managing Director of Essel Propack, said, “The USA and Americas have a major role to play in our growth plans. Our investments in Danville, Virginia, have proved to be right and we have grown from strength to strength in this market during the last five years. The support we received from the Commonwealth of Virginia and the City of Danville has played a pivotal role in building our strong position in the USA market.”

“The support we’ve received from the City of Danville and the commitment Virginia has demonstrated toward our efforts has made our decision to expand in Danville an easy one,” said Adrian Spencer, Vice President of the Americas for Essel Propack. “We’ve discovered a willing and able workforce, solid infrastructure and outstanding training facilities in Danville that are vital to our success. I look forward to continuing our partnership with the City and the Commonwealth of Virginia.”

Essel Propack is the largest specialty packaging company in the world, manufacturing laminated and seamless tubes that cater to the top multinational companies in the toothpaste, cosmetics, pharmaceutical, food and industrial sectors. Headquartered in Mumbai, India, the company is the flagship of Essel Group, which has a wide range of global business interests encompassing specialty packaging, media programming, broadcasting and distribution, entertainment, telecom and trading.

Essel Propack is ranked No. 1 in the world for the manufacture of laminated tubes, with manufacturing in China, the United States, the United Kingdom, Germany, Russia, Mexico, Colombia, Philippines, Indonesia, and Egypt, besides India, and has 32 percent global market share.

“Our close partnership with this international leader in specialty packaging continues to produce phenomenal results,” said Danville City Manager Jerry L. Gwaltney. “Not only has Essel Propack expanded the facility three times, they played an instrumental role in Arista Tubes’ selection of Danville – a project creating 145 jobs and investing $24 million. As a premiere employer for the City of Danville, Essel Propack has always exceeded our expectations. They first began production here in 2002 and will now have 206 jobs with above average wages and $60.4 million invested in our community. Essel Propack’s expansion is a victory not only for the City of Danville but also for the Commonwealth.”