Nixon announces state job creation incentives at Nordenia visit

Gov. Jay Nixon visited Nordenia USA in Jackson on Thursday to announce the company is eligible for more than $350,000 in state tax credits for creating 50 jobs at its facility under construction off U.S. 61.

The tax breaks, part of the Missouri Quality Jobs program, are in addition to a $500,000 state grant Jackson received to construct road and utility infrastructure at the Jackson Industrial Park. This brings the total state incentive package for Nordenia to $851,804.

Penzel Construction is already at work on Nordenia's 186,000-square-foot facility off U.S. 61. It's scheduled to be completed before the end of the year.

Nordenia will add 21,000 square feet to its existing facility.

Hiring is already underway and will continue over the next few months.

Nordenia will invest $20 million to $22 million over the next three to four years in construction and equipment for its new facility and an expansion at its existing plant.

The company will spend $4 million in 2012 alone, said Bill Burke, plant manager.

Nixon said Missouri's unemployment rate is 8.8 percent, the lowest in two years.

"It's not low enough. We've still got work to do," Nixon said.

Other good economic news for the state is that exports increased 35 percent during 2010 and were up 18 percent so far in 2011.

He said companies like Nordenia are helping to drive that trend. About 20 percent of Nordenia's products are exported overseas, Burke said.

"We are living out the fact that our kids and our companies both have to be citizens not only of their cities and our counties and our state, but of the world," Nixon said. "That's who we're competing with. We're not just competing with people down the street, we're competing with people many time zones away."

In addition to state economic development incentives, Cape Girardeau County commissioners in June gave preliminary approval to issue up to $25 million in Chapter 100 revenue bonds for Nordenia. They also gave preliminary approval to a sales tax exemption for building materials used to construct the new facility.

The Chapter 100 request, if granted, would give Nordenia a 50 percent real estate and personal property tax break for 10 years. Commissioners will consider a final resolution on the sales tax exemption next week. In September, they will review the final Chapter 100 resolution.

Nordenia's expansion will help it meet growing demands for pet food, agricultural and lawn and garden product packaging.

Nordenia is helping a number of companies convert from rigid plastic pails to flexible plastic bags, Burke said.

Nordenia's custom printed bags use much less plastic than traditional pails and cost less to transport. One truckload of bags, for example, is equal to 13 truckloads of plastic kitty litter pails, Burke said.

Many pet foods that were previously in a laminated paper bag are also converting to the plastic packages Nordenia produces, he said. Handles and resealable zippers added to the bags make them popular with consumers as well.

Nordenia's current facility opened in 1989 with five employees and now employs about 400. Its biggest customers include Procter & Gamble, Tyson Foods and Nestle.

mmiller@semissourian.com

388-3646

Pertinent address:

14591 State Highway 177, Jackson, MO