Saica Group, one of the largest and most advanced European players in the development and production of recycled paper for corrugated packaging is establishing its first North American facility near Cincinnati, Ohio. The company will construct a new corrugated manufacturing facility in the City of Hamilton’s Enterprise Park. The announcement has been made after the final approval from the Board of Directors that took place this last Tuesday.
Headquartered in Spain, and with more than 10,000 employees across Europe, Saica Group is a world leader in the manufacture of high quality, efficient and environmentally responsible packaging materials. It has four business areas: Saica Natur, managing waste and environmental services; Saica Paper, a sustainable and innovative leader in recycled paper for corrugated board; Saica Pack, the third largest European player in the production of corrugated packaging; and Saica Flex, producing flexible packaging.
The company plans to build a state-of-the-art factory and expects to invest nearly $72 million once construction of the corrugated plant is complete. The construction is expected to start in September 2020 and take eighteen months to finish. With this new project, Saica Group will create 64 new jobs in the state of Ohio.
“Saica Group’s know-how and experience in the production of lighter weight containerboard and corrugated packaging will bring high performance packaging and reduced materials use to the US market. Since the beginning, we have been looking at different locations in the Midwest”, said Ramon Alejandro, Chairman of Saica Group. “The assistance offer from the State of Ohio combined with the appealing proposal from the City of Hamilton motivated our decision. JobsOhio, REDI Cincinnati and the City of Hamilton have been key supporting players during this process. We are very excited with this new project and we look forward to the next steps”.
As part of its investment, Saica Group plans to build a 350,000-square-foot facility that will eventually house 64 new employees. The site is in the Hamilton Enterprise Park, owned by the City of Hamilton and dedicated to attracting new manufacturing operations to the city. The jobs created at the site will consist of 27 skilled operators, 15 manufacturing, engineering and supply chain professionals, 13 sales staff and 9 office and management jobs.
"Saica is well known throughout Europe as a company with an environmentally conscious approach to business, something that the City of Hamilton also prides itself on. This company will pay homage to Hamilton’s rich history of paper manufacturing while also diversifying our business community,” said Jody Gunderson, director of economic development for the City of Hamilton. “Leadership at Saica has exhibited the utmost professionalism and adaptability during these challenging times, and Hamilton’s elected officials and staff are anxious for this project to break ground."
When Saica Group started planning its entry into North America, it immediately began considering sites in the Midwest due to the experience and talent of the workforce, the concentration of manufacturing and proximity to potential clients. Hamilton Enterprise Park quickly stood out as a prime location for the manufacturer because of its readiness for construction and accessibility to the rest of the Midwest.
“For a Spanish-based company like Saica to choose the Cincinnati region as its first entry into the U.S. is a compliment to the region and a testament to the work being done by the City of Hamilton to ready sites for future investment,” said Brandon Simmons, REDI Cincinnati vice president of project management. “Hamilton’s Enterprise Park is a leading example of investing in shovel-ready sites that lead to growth. I’m thankful for our partnership with the City of Hamilton, JobsOhio, and Ohio’s Development Services Agency, and I look forward to seeing Saica thrive in the Cincinnati region.”
State and local incentives are expected to support Saica’s investment in Hamilton. In June, the State of Ohio approved a Job Creation Tax Credit, and JobsOhio is supporting the project with a JobsOhio Economic Development Grant and JobsOhio Workforce Grant. The project is also contingent on the approval of a Job Creation Tax Credit and property tax abatement by the City of Hamilton.
“Ohio supply chain, infrastructure and talent make it the premier destination for Saica’s first North American manufacturing facility,” said JobsOhio president and CEO J.P. Nauseef. “Saica’s confidence in choosing Hamilton for this new facility is more evidence that Ohio’s economy and its people are resilient and agile.”