Kruger Packaging investing $114 million in new Elizabethtown site, will create 150 jobs

ELIZABETHTOWN, Ky. — Canada-based Kruger Packaging announces investment of $114.2 million into its state-of-the-art packaging manufacturing operation. The project will create at least 150 quality jobs in the coming years.

The new 400,000-s.f. facility to be located at T.J. Patterson Industrial Park in Elizabethtown will operate under the name Kruger Packaging (USA) LLC and represents the company’s first corrugated box plant in the U.S.

Founded in 1904, Kruger Packaging’s parent company, Kruger Inc., is headquartered in Montréal, Canada, and produces 100% recycled containerboard products, corrugated packaging, tissue products, publication and specialty papers, renewable energy, cellulosic biomaterials, and wines and spirits. The company also is a major North American recycler of paper and paperboard. Kruger operates 19 facilities across 10 sectors in Canada and the U.S., including locations in Maine, New York, North Carolina, Rhode Island, Tennessee and Virginia.

Kruger Packaging also adds to Kentucky’s growing agritech sector. The Kentucky agritech initiative includes a number of midstream technologies, including innovations in processing, packaging and distribution. The company’s commitment to its people and sustainability aligns with the goals of the Kentucky agritech initiative, particularly as state leaders continue to develop and support packaging and distribution services for a range of sectors, including the food and beverage industry.

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $3.45 million in tax incentives based on the company’s investment of $114.2 million and annual targets of:

  • Creation and maintenance of 147 Kentucky-resident, full-time jobs across 10 years; and
  • Paying an average hourly wage of $32.50 including benefits across those jobs.

Additionally, KEDFA approved Kruger Packaging for up to $1.58 million in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.

In addition, the company can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.

For more information on Kruger, visit Kruger.com.

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