Plastic plant planning major expansion in Raleigh County

May 2—A German company, which set up shop in Raleigh County more than 20 years ago, is now looking to invest $18 million to expand its plant and bring in about 80 new jobs.

During a Raleigh County Commission meeting Tuesday morning, commissioners gave the green light to start the process of assisting Klöckner Pentaplast, a plastic manufacturer, in the financing for an $18 million expansion at its Beaver, W.Va., plant.

Jina Belcher, executive director of the New River Gorge Regional Development Authority, said she's been working with Klöckner Pentaplast for about two and a half years to assist in planning the 60,000-square-foot expansion.

"We felt that working with the Raleigh County Commission, through the construction and issuing a bond to help support the construction financing, and potential long-term financing on this project was really the best (interest) rate environment for Klöckner to be able to expand here," Belcher said.

Belcher said the company's goal with the expansion is to make the Beaver facility its "North American food hub facility."

In 2019, Belcher said Klöckner Pentaplast's Beaver facility was the company's most productive site.

She added that the facility produces plastic packaging including clamshells for fruit and battery packaging.

As part of the expansion, Belcher said Klöckner Pentaplast will be looking to use its Raleigh County facility to manufacture other products, including food grade protein packaging for hamburgers, chicken and other proteins.

Since 2000, Klöckner Pentaplast has operated from the industrial park at Beckley-Raleigh County Memorial Airport. Klöckner Pentaplast is a global manufacturer and one of the leading suppliers of sustainable plastic packaging products, according to the company website.

In explaining the project to commissioners, Roger Hunter, bond counsel for the project with Bowles Rice LLP, said this approval would be just the first step in a long process and partnership with Klöckner Pentaplast.

"This (inducement resolution) does some fundamental preliminary things that are very important for this project, which will be an expansion of the existing Klöckner (Pentaplast) facility out near the airport — anticipated approximately 80 new good-paying jobs with benefits," Roger said.

In giving the green light for this first step, Roger said commissioners are signaling to the Raleigh County Building Commission that it's OK to proceed with the next phase of the financing.

This will include the building commission securing up to $19 million in taxable revenue bonds as well as crafting a lease.

"So there's a lot of work yet to be done, but this is essentially the first step, a green light from you all asking the building commission to proceed," Roger said.

He went on to say that the Raleigh County Building Commission, on behalf of Raleigh County, will own the property the Beaver plant sits on. The building commission will then lease the property to the county, and the county will sublease the property to the New River Gorge Regional Development Authority, which will in turn have a lease with Klöckner Pentaplast.

Belcher said Klöckner Pentaplast has a similar arrangement with the state for its current facility.

"Their existing facility is owned by the West Virginia EDA, and they have been doing a lease purchase directly with Klöckner (Pentaplast)," Belcher said. "Their term expires June the 30th, so their building will be paid off and wholly owned by Klöckner Pentaplast and so it was a really perfect time for us to be able to take ownership of the property as the Raleigh County Building Commission and then have that expansion so that we could then lease-purchase that expansion."

Now that the plan has the blessing of the Raleigh County Commission, it will need to go before the Raleigh County Building Commission for three readings and a public hearing. The first reading is expected to take place this week.

If the building commission approves the resolution, it will then go back to the Raleigh County Commission for final approval.

If all goes as planned, Belcher said construction on the 60,000-square-foot expansion could start mid-July.

"They've been a great community partner for us to be able to collaborate with and work through trainings and job fairs and those sorts of things with and so we want to really continue to support them here and allow them to grow in the Raleigh County facility," Belcher said.

Commission President Dave Tolliver said the proposal is a "win-win" situation for everyone involved.

"They have been here for several years. Their workforce has been great for them, and they're really enthused," Toliver said.

Commissioner Greg Duckworth said he is pleased to support an initiative that brings jobs to Raleigh County.

"It's just all around a positive thing for the county," Duckworth said. "We don't get to announce new job openings or new job opportunities here as much as we should be, and this is a chance to brag on the jobs that are coming to Raleigh County."

Email: jmoore@register-herald.com