US producer of plastic sheet, compounds and packaging products Spartech has announced plans to expand its packaging facility in Muncie, Indiana, US.

The plant was one of several facilities the company considered for the upgrades and the expansion will add about 60,000ft² of production space and include the installation of two new extrusion lines, as well as several new thermoforming lines.

Spartech will be provided with a $2.4m tax increment financing bond by the Muncie-Delaware County Economic Development Alliance, which is working with local government leaders to assist the company.

The Indiana Economic Development has offered $75,000 to the company in training funds and $235,000 in economic development for a growing economy (EDGE) tax credits.

The completion of the project is scheduled for 1 November 2012.

The facility, which was purchased by Spartech in 1999 from Ball Plastic, manufactures food packaging products in the form of rollstock for form, fill and seal applications, and thermoformed containers.

The facility serves customers including ConAgra Foods, Snack Pack pudding, Knouse Foods and Musselman’s applesauce.

Spartech’s three business segments operate 33 facilities in the US, Mexico, Canada, and France, which together process about one billion pounds of plastic resins, specialty plastic alloys, and colour and specialty compounds every year.