Printpack has announced plans to build a plant in Wisconsin for US$72m (€57.3m) which will mean the closure of its current North Carolina and Wisconsin sites.
Construction of the new site will start later this year and the transition will take place in the second half of 2013.
The firm said the new Rhinelander plant will mean the closure of the Hendersonville site and the transition of the current Rhinelander site because of the additional capacity it will create.
They added the move was made as part of its “strategy of aggressive reinvestment to improve production efficiency.”
A spokesperson for Printpack told FoodProductionDaily.com: “We expect to break ground for the new Rhinelander facility in the fall of 2012 and [it] should be finished in the second half of 2013.
“There are 115 associates in the Hendersonville facility. Printpack will work with those who are qualified, and will be offering severance packages to those who will be leaving.”
The spokesperson said the firm was unable to comment for confidentiality reasons on why the firm made the move now and why it was necessary to build a new Rhinelander plant instead of refurbishing the old site.
The company estimated that the building will cost around $32m with the remaining $40m being invested in new technology.
Dennis Love, president and CEO, said: “The decision to close Hendersonville was very difficult for us.
“However, our goal has always been to provide our customers competitively priced, high quality packaging materials, utilizing the best technology available.
“This new investment will enable us to continue to meet this goal.”
The Rhinelander plant employs 138, and the new site will initially add 12 to 15 jobs, with room for future expansion.
Terry Harper, the company’s vice-president of technology and support, added: “We have a lot of great experience in Rhinelander since we purchased the plant in 1989.
“We have a tremendous workforce in Rhinelander that has always produced extremely well for the company.”
Printpack manufactures bags and pouches, modified atmosphere packaging (MAP) and rigid containers and for the food, bakery, confectionery, dairy and beverage markets.