May 17, 2006

Kevin Hall
(804) 225-4260

Bruno Killias
Arista Tubes
(434) 688-1173
Christie Miller
(804) 545-5805
-Arista Tubes to invest $24 million in former Dan River building -

DANVILLE - Governor Timothy M. Kaine today announced that Arista Tubes, UK, a manufacturer of plastic tubes used in the consumer and personal care products industry and an integral part of Essel Propack, will invest $24 million to open a manufacturing facility in Danville. The project will create 145 new jobs. The company plans to move into a former Dan River facility at River Pointe, and is scheduled to begin operations by summer. Virginia successfully competed with New Jersey and Pennsylvania for the project.

“It is gratifying to announce 145 new jobs in Danville at a time when the community is facing the prospect of job losses due to Dan River’s downsizing,” said Governor Kaine. “Essel Propack, a corporate partner in Virginia since 2002, acquired Arista Tubes, and encouraged the company to bring its business to Danville. I congratulate Arista Tubes, and I thank Essel Propack for its continued confidence in Southside Virginia.”

Arista Tubes, founded in the 1920s, is the United Kingdom’s leading manufacturer of extruded plastic tubes, and currently employs about 150 people at its manufacturing site in Stevenage, Hertfordshire. Essel Propack, an India-based manufacturer of laminated and plastic tubes, acquired Arista Tubes in August 2004.

“This is a major step in our strategic plan for growth in plastic tubes globally and for growth in the U.S. market,” said Ashok Goel, Vice Chairman & Managing Director of Essel Propack in Mumbai. “Plastic tubes is our second horizon for growth, after laminated tubes. We foresee a great future in plastic tubes.”

“We will be deploying a state-of-the-art technology for most of the processes,” said R. Chandrasekhar, Chief Operating Officer (Global) at Essel Propack “But in certain processes such as heading, we will be introducing a breakthrough technology.”

The Virginia Economic Development Partnership worked with the City of Danville to prepare the state’s proposal and negotiate an incentive package to secure the project for Virginia. Governor Kaine approved a $300,000 grant from the Governor’s Opportunity Fund to assist Danville with the project. The Virginia Tobacco Indemnification and Community Revitalization Commission approved $300,000 in Tobacco Region Opportunity Funds for the project. The company is eligible to receive state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development, because it is locating in a Virginia Enterprise Zone. The Virginia Department of Business Assistance will also provide training assistance through its Workforce Services Jobs Investment Program.

"Since the day we began our association with the State of Virginia and the City of Danville, it was a close partnership, all along the way,” said Manuel Diez, Regional Director - Americas, Essel Propack. “This partnership has gone a long way in establishing, strengthening and growing Essel Propack in the U.S.A. With the continued partnership from our friends here, we are sure to succeed in the U.S. with our new venture in plastic tubes."

“We have worked very hard to get Arista Tubes into Danville,” said Jerry L. Gwaltney, City Manager for the City of Danville. “Our partnership working previously with Arista’s parent company, Essel Propak India, provided an excellent example of our capabilities and I believe demonstrated the many reasons to locate here. I deeply value the positive relationship we have built with Essel Propak, and their commitment to our community. Arista’s new site is further testament to that relationship. Arista Tubes’ commitment to make Danville their first U.S. site is evidence to the talent and assets that Danville has to offer global business.”


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