Klöckner Pentaplast to Expand Louisa and Wythe Operations with $68 Million Investment

RICHMOND—Governor Ralph Northam today announced that Klöckner Pentaplast Group (kp), a global leader in recycled content products and high-barrier protective packaging, will invest a total of $68 million to expand its facilities in Louisa County and Wythe County, creating 54 new jobs in the Commonwealth.
 
The company will expand capacity at its operation at 3585 Klöckner Road in Gordonsville, creating 28 new jobs. The Louisa County facility manufactures pharmaceutical and medical device packaging films. Klöckner Pentaplast will also create 26 jobs at its Wythe County facility, located at 555 East Buck Avenue in Rural Retreat, which produces packaging films for the food and beverage industry. Virginia successfully competed with West Virginia for the expansions.
 
“Klöckner Pentaplast’s decision to deepen its roots in the Commonwealth underscores the importance of having strong infrastructure and a ready workforce to support the advanced manufacturing industry,” said Governor Northam. “We are proud to continue a decades-long partnership with an innovative global manufacturer like kp, and we thank the company for its major investment, which will have a positive impact in Louisa and Wythe Counties and bolster Virginia’s ongoing recovery efforts.”
 
Klöckner Pentaplast Group is a global leader in rigid and flexible packaging and specialty film solutions, serving the pharmaceutical, medical device, food, beverage, and card markets, among others. With a broad portfolio of packaging and product films and services, Klöckner Pentaplast plays an integral role in the customer value chain by safeguarding product integrity, assuring safety and consumer health, improving sustainability, and protecting brand reputation. Founded in 1965 in Montabaur, Germany, Klöckner Pentaplast has operations in 18 countries and employs over 5,900 people worldwide in over 60 locations, including 32 production sites. The company established its first North American production facility in 1979 in Gordonsville, Virginia.
 
“We are proud Klöckner Pentaplast will expand operations in Louisa County and Wythe County, growing its corporate footprint in the Commonwealth and creating more than 50 high-quality jobs,” said Secretary of Commerce and Trade Brian Ball. “This company is at the forefront of the packaging industry, and a manufacturer of kp’s caliber will continue to bolster this thriving sector in Virginia.”
 
“For kp, the investment strengthens our local footprint in Virginia, which has served as the company’s proud home and a mainstay in the community for several decades,” said Tracey Peacock, kp’s President of the Pharma, Health and Specialties Division. “Virginia is the ideal location to expand our facilities due to its proximity to customers, allowing us to conveniently serve them and to position the Gordonsville and Rural Retreat sites as Centers of Excellence for the company. This expansion will provide new capacity for both heat shrink sleeve films and our post-consumer recycled PET line, which we previously announced to serve our sustainable consumer and food packaging customer base. The new PET heat shrink sleeve film production line is expected to be fully operational in the third quarter of 2022.”
 
The Virginia Economic Development Partnership worked with Louisa County, Wythe County, the Joint Industrial Development Authority of Wythe County, the Town of Rural Retreat, and Virginia’s Industrial Advancement Alliance to secure the project for Virginia. Governor Northam approved a performance-based grant of $800,000 from the Virginia Investment Performance program, an incentive that encourages capital investment by existing Virginia companies. The Virginia Tobacco Region Revitalization Commission approved $263,500 from the Tobacco Region Opportunity Fund for the Wythe County expansion. Funding and services to support Klöckner Pentaplast employee training activities will be provided through the Virginia Jobs Investment Program.
 
“For over four decades, Klöckner has anchored the manufacturing sector in Louisa County, creating hundreds of quality job opportunities for our citizens and supporting our community,” said Bob Babyok, Chairman of the Louisa County Board of Supervisors. “We are grateful that Klöckner has chosen to continue to invest in our community and in our citizens, and the Louisa County Board of Supervisors is proud to support the company’s expansion efforts.”
 
“The Town of Rural Retreat has a long history with Klöckner Pentaplast, and we welcome its continued investment in our community,” said Mayor of the Town of Rural Retreat Timothy G. Litz. “We have a strong, longstanding partnership with the company, and we look forward to continued shared vitality with this expansion.”
 
“Klöckner Pentaplast is an important member of Wythe County’s vibrant manufacturing community,” said Brian W. Vaught, Chairman of the Wythe County Board of Supervisors. “We welcome this significant expansion and look forward to supporting the company’s future success.” 
 
“The Joint Industrial Development Authority of Wythe County is pleased to have supported this substantial project for the people of Wythe County,” said David A. Kause, Chairman of the Joint Industrial Development Authority of Wythe County, Wytheville, and Rural Retreat. “Klöckner Pentaplast’s growth and investment in Rural Retreat is a vote of confidence in our community and the strong workforce we offer.”
 
“Klöckner Pentaplast has been a part of our Virginia business community for decades, and it is great to see them expand its operation in the Commonwealth,” said Tobacco Commission Chairman Delegate Terry Kilgore. “The jobs created by this expansion will be a big help to our rural communities as we recover from this pandemic, and I am proud that the Tobacco Commission chose to support this expansion.”
 
“The Klöckner Pentaplast Group has been a stable workforce provider in my district for many years,” said Senator Bryce E. Reeves. “I commend them for expanding operations and for providing more economic opportunity and well-paying skilled labor jobs to our community. Louisa County and the surrounding areas will benefit from this expansion decision for years to come.”
 
“Today’s announcement by Klöckner Pentaplast underscores the economic opportunity that abounds in Wythe County and Southwest Virginia,” said Senator Todd Pillion. “This is especially great news for the Rural Retreat community where the company is creating new jobs and strengthening our region’s manufacturing base. I appreciate Klöckner Pentaplast for its continued commitment to Wythe County, and wish the company’s employees much success.” 
 
“Klöckner has been a treasured corporate citizen of Wythe County for many years, providing high-quality, good-paying employment for our residents, as well as making substantial capital investment in our community,” said Delegate Jeffrey Campbell. “This latest expansion of Klöckner’s Rural Retreat operations is a testament to the hard work and ingenuity of the company and its employees, and I wholeheartedly congratulate them on the continued success.”