New industry eyeing move to Shelby

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Tegrant would build new facility, create 51 jobs

By Todd Martin

Shelbyville soon could land a new industry that plans to invest up to $12.25 million in building a new site in the city.

The Kentucky Economic Development Finance Authority (KEDFA) approved on Thursday a tax incentive package worth up to $900,000 for Tegrant Diversified Brands.

The incentive package would stretch over 10 years and only be worth the maximum amount if Tegrant maintains 51 employees with an hourly compensation package of at least $12.51 and has a minimum 85 percent employees that are full-time Kentucky residents.

Bobby Hudson, president of the Shelby County Industrial & Development Foundation, met with the Shelbyville City Council last week on the matter and said it is very close to becoming a done deal.

“Everything is preliminary right now, but we’re very, very close to getting this done,” he said. “I can’t really comment about the particulars that we’re working on now, but it’s all little details. Hopefully we can have something finished in the next ten days or less.”

Daniel Lowry, spokesperson for the Kentucky Cabinet for Economic Development, said the preliminary approval has no deadline, and final approval could be several years down the road.

“This just goes into affect once they start hiring employees, and then we’ll monitor the situation to make sure they meet all the criteria,” Lowry said. “The nine hundred thousand is the maximum they can earn in incentives.”

If the deal is completed, Tegrant – which also has a facility in Louisville – would build a $4.2 million facility in an undisclosed Shelbyville location, with the total investment just less than $12.25 million, a report from the KEDFA stated.

The new facility, the report said, would focus on manufacturing foam-based and safety products for the automotive industry. However, listings for Tegrant and its parent company, Sonoco, and Sonoco Alloyd, a subsidiary, make no reference to the manufacturing of automotive supplies.

The companies all focus on the manufacturing of a wide variety of packing and shipping supplies.

Sonoco Products Company purchased Tegrant, which is based in Dekalb, Ill., in 2011 for $550 million. Sonoco, which is based in Hartsville, S.C., has annual net sales of about $5 billion and more than 19,000 employees in 340 operations across 34 countries.