Brodrene Hartmann’s Egg Carton Production Facility, Missouri, United States of America
Danish manufacturer Brodrene Hartmann announced plans to expand its packaging operations into the US Midwest, by setting up its first egg packaging production facility in the city of Rolla, Missouri. The company will operate under the name Hartmann US in the American market.
The investment is in line with the company's strategy 'Unpacking Our Potential', which focuses on achieving growth and efficiency towards the end of 2017. The expansion will provide additional production capacity to the company and also increase its distribution efficiencies.
The proposed egg carton plant is scheduled to become operational in early 2017, while the company plans to start hiring in mid-2016. It will initially create 50 new jobs, with this number expected to double in future.
Brodrene Hartmann is closely working with state and local authorities, which are supporting the investment with a number of tax benefits. The Rolla Regional Economic Commission (RREC) has played a key role to attract the investment to the region.
Background of Missouri egg carton facility
Brodrene Hartmann currently serves the North American market with its Brantford production facility in Ontario, Canada. The facility is witnessing increased capacity utilisation in the recent years, which contributed significantly to company's growth and profitability.
To continue the positive development, the company planned to expand its operations into the US market. With presence in both Canada and the US, the company aims to gain a major market share and lay a strong foundation for business expansion.
Location of Brodrene Hartmann's Midwest egg carton production site
The State of Missouri, the Missouri Partnership, and the City of Rolla assisted Brodrene Hartmann to choose a strategic location for its first investment in the US. The proposed plant will be located in Hy-Point Industrial Park, which is one of the three industrial sites in Rolla, Missouri.
The state of Missouri has been chosen out of the five competing Midwest states due to its strengths in advanced manufacturing, competitive business environment and the availability of regional manufacturing workforce.
The location also provides better transportation access to customers across the country from the I-44 corridor and the intermodal rail connections in St Louis and Kansas city.
Production details of Hartmann's Rolla packaging plant
The packaging plant will be located in an existing 334,000ft² facility, which will be retrofitted to produce the company's egg cartons. It will produce moulded-fibre egg cartons from recycled newspaper sourced from the Midwest and distributed nationally.
The egg cartons are being made from eco-friendly raw material and complement the eggs as natural products.
Investment and financing details
The carton-producer will initially invest $30m in the Rolla facility and plans to double the investment in the next six years. The investment is anticipated to contribute to the company's long-term financial goals of increasing its revenue to up to DKK2.4bn and profit margin to 12%-14% in 2017.
The strategic economic incentive packages offered by the Missouri Department of Economic Development, Phelps County, the City of Rolla and Rolla Municipal Utilities will be released based on the job creation and power usage criteria.
Sustainability of moulded-fibre packaging
All the products produced by the Hartmann are based on recycled paper, which is a renewable, CO2-neutral and bio-degradable resource.
The moulded-fibre packaging made of recycled newspaper represents a highly efficient use of a renewable resource that would otherwise be disposed. The packaging can be reused, recycled and composted, all of which are sustainable ways of disposal.
Egg trays made of moulded-fibre can be reused for five to ten times before returning them to fibre production. The combination of reuse and reprocessing, known as double loop, is not common even among paper products.