Speciality packaging company Essel Propack is set to invest $31.2m to expand its manufacturing facility located in Danville, Virginia, US.

The company will use the investment to introduce new super-high-output tubes (SHOT) technology, which is expected to double the plant’s production capacity.

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Virginia Commerce and Trade Secretary Brian Ball said: “Essel Propack’s decision to introduce new technology at its facility in the City of Danville will ensure that Southern Virginia and the Commonwealth remain at the forefront of advancements in the manufacturing industry.

“Industry-led innovation continues to be a crucial component of our efforts to maintain a thriving, 21st-century economy, and we thank Essel Propack for its significant contribution.”

Virginia Governor Ralph Northam said that the state has competed with Brazil and Argentina for this project. The investment is expected to create 45 jobs.

The Virginia Economic Development Partnership, the City of Danville, and the Southern Virginia Regional Alliance worked collaboratively to secure the investment opportunity for the state.

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“Industry-led innovation continues to be a crucial component of our efforts to maintain a thriving, 21st-century economy.”

To assist Danville, Northam approved a $150,000 grant from the Commonwealth’s Opportunity and a $300,000 performance-based grant for the company from the Virginia Investment Performance (VIP) Programme.

The Virginia Tobacco Region Revitalization Commission also approved a $330,000 grant in Tobacco Region Opportunity Funds for the project.

Established in 1982, Essel Propack manufactures a range of multilayer collapsible tubes and laminates to serve the packaging needs of personal care, food, pharmaceutical, and other businesses.

The company currently employs more than 2,850 associates globally, including 252 at its manufacturing facility in Danville.