July 03, 2002

Ellen Qualls
(804) 786-2211, x2379

Mr. Chandra Shekhar, CFO
(91) 22 4974248
Jill Lawrence
(804) 371-0049
EsselPropack To Create 81 New Jobs In Danville
-Governor Warner welcomes company’s first U.S. facility, $21 million investment-

RICHMOND - Governor Mark R. Warner today announced that EsselPropack America, LLC, a tubing manufacturer, has chosen the City of Danville as the location for its first U.S. manufacturing facility. The company plans to create 81 new jobs through a $21 million investment. The new facility will be located in the Airside Industrial Park. Virginia competed with North Carolina for the investment.

“I am very pleased with EsselPropack’s decision to locate in Virginia," said Governor Warner. “This represents the first new business announcement for Danville since 1996, and I am sure this international company will be a tremendous addition to the Southside economy.”

Since taking office in January, Governor Warner has announced $120 million in new capital investment and creation of 1,721 jobs in Southside, a region hit hard by downturns in the textile and furniture industries. The Governor also established Coordinated Economic Relief Centers to assist unemployed residents of Martinsville, Clarksville, and South Boston, providing easy access to a wide array of job search and public and private relief services.

Headquartered in India, EsselPropack Ltd. is the world’s largest laminated and plastic tube manufacturer. These tubes are used by the dental care, pharmaceutical, cosmetics, food and household products industries. The company was founded in 1984 and currently has manufacturing operations in 10 countries across the globe. The Danville facility will manufacture and supply Procter & Gamble’s Greensboro plant with toothpaste tubes. EsselPropack plans to hire qualified technicians, production workers and administrative personnel.

“We selected Danville, Virginia for many reasons,” said Manuel Diez, Manager of EsselPropack America LLC. “The area offers adequate industrial infrastructure, a skilled workforce, a quality education system to train our employees, excellent transportation access, and significant cost benefits. In addition, we were truly impressed by the professionalism of the city and state representatives that worked on our project. Their responsiveness and hard work made the difference.”

Governor Warner approved a $200,000 grant from the Governor’s Opportunity Fund to assist the City of Danville with the project. Additionally, the city obtained $200,000 in Tobacco Region Opportunity Funds to assist with the project. EsselPropack is also eligible to receive further tax credits because it is locating in an enterprise zone. The Virginia Economic Development Partnership and the City of Danville Office of Economic Development assisted EsselPropack with its decision. The Virginia Department of Business Assistance will provide workforce training services. The agency’s Virginia Small Business Financing Authority will assist in financing through a $1.6 million loan to the City of Danville Industrial Development Authority.

“EsselPropack’s decision to locate their facility in Danville highlights the positive business climate in our community,” Danville City Manager Jerry Gwaltney said. “This announcement is a tremendous win for the City of Danville and the Commonwealth. This company will provide excellent job opportunities for our people to offset a portion of recent job losses in Danville. We look forward to partnering with Danville’s newest corporate citizen.”


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