For the second time in two years, Louisa County will give Klöckner Pentaplast a tax abatement in exchange for the company agreeing to hire new workers and invest in factory buildings.
The performance agreement that the Louisa County Board of Supervisors approved on Nov. 16 calls for Klöckner to create 28 new full-time jobs and invest $19.5 million. The county will provide 100 percent tax rebates on the investment, for a total of $450,000 or for seven years, whichever comes first.
The county will also provide a $50,000 cash grant to the plastic packaging manufacturer. The grant will be issued when the company obtains a building permit for new construction at the Gordonsville-area facility.
The terms of the deal specify that Klöckner won’t be able to claim tax rebates until the county has realized a $50,000 return on investment as a result of the building project.
The average annual wage of the new jobs will be $47,000. Half of the new jobs must be created by Sept. 21, 2021, according to the agreement.
“Virginia is the ideal location to expand our facilities due to its proximity to customers,” said Tracey Peacock, a president of Klöckner’s pharma, health and specialties division.
She said the expansion will increase capacity for heat shrink sleeve films and post-consumer recycled plastics for consumer and food packaging.
In January 2019, the county and Klöckner made a similar deal for up to $700,000 in tax rebates over 10 years and 34 new jobs. The state provided a $300,000 grant, but the deal did not involve a cash grant from the county.
At the time, county Economic Development Director Andy Wade said the company might relocate some existing positions to another state if it didn’t receive state and county financial help.
Klöckner had 464 employees in 2019, according to a county financial report, making it Louisa’s fourth-largest employer. The company employed 532 people in the county in the previous year.
“We are grateful that Klöckner has chosen to continue to invest in our community and in our citizens,” said Louisa County Board of Supervisors Chairman Bob Babyok (Green Springs District).