UPM Raflatac, one of the world’s leading suppliers of paper-based and film pressure sensitive labelstock, was awarded more than $4.5 million in Opportunity Returns from the state of Illinois as part of its estimated $109 million investment to open a new manufacturing facility in Dixon, Ill.
The new facility will create about 115 new jobs within the first two years of operations and increasing to an estimated total of 160 jobs within five years. This business investment package comes as a part of Opportunity Returns, the state’s comprehensive economic development strategy to create jobs and spur more growth in Northwest Illinois.
UPM Raflatac is part of UPM, one of the world's leading forest products companies. UPM Raflatac began production of pressure sensitive labelstock in the early 1970s in Tampere, Finland and, in less than 30 years, the company has grown to become one of the world’s leading manufacturers of pressure sensitive sheet and roll labelstock.
The company has a global service network consisting of eleven factories on five continents and a broad network of terminals and sales offices worldwide, with 2,300 total employees. The company currently has one U.S. production facility in Fletcher, N.C., and, as a result of rapid growth and increasing market share, there is a demand for a second production facility. Construction in Dixon will begin next month with the opening expected in 2008.
“With the Dixon investment, we will complete our service network in the U.S. market, consisting of our labelstock and RFID tag and inlay factories in Fletcher, North Carolina and the slitting terminals in Wilkes-Barre, Pennsylvania and Ontario, California.,” said Heikki Pikkarainen, president of UPM Raflatac. “Our Fletcher operation has been a great success, and we have received an extremely favorable customer reception for our product and service offering in North America. The Dixon factory will enable us to grow further in North America, where the market growth is annually approximately 5 percent.”
The Illinois Department of Commerce and Economic Opportunity (DCEO) is administering the business investment package. It includes Economic Development for a Growing Economy (EDGE) corporate income tax credits over the next 10 years based on job creation; Employer Training Investment Program (ETIP) job training funds that will help enhance the skills of its work force; a grant for infrastructure costs and site improvements; as well as additional financial benefits, such as sales tax exemptions and tax credits for job creation, resulting from the company’s location within an Enterprise Zone.
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