Plastic Bag Manufacturer Eyes 2007 for Construction of New Headquarters and Plant in Sugar Land, Texas

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Researched by Industrial Info Resources (Sugar Land, Texas). Advance Polybag Incorporated (Houston, Texas) purchased a 13.55-acre site in the Sugar Land Business Park in June 2006. The company plans to relocate headquarters from a temporary location in southwest Houston, where it has operated since Hurricane Katrina severely damaged facilities and forced the company to leave its home in Metairie, Louisiana.

API Realty LLC, an affiliate of Advance Polybag Incorporated, acquired the site from Pelec Development. Advance Polybag is planning to construct a 150,000 square foot building to house headquarters, manufacturing, printing, warehousing, and distribution of plastic bags for grocery store chains.

The City of Sugar Land has granted Advance Polybag a 10-year, 50% tax abatement on improvements to the property. This is expected to save the company about $31,000 per year in taxes. "We’re pleased that Advance Polybag has decided to choose Sugar Land as their new corporate home,” said Regina Morales, Director of Economic Development. “They will contribute to a strong, growing business community in Sugar Land that’s added over 500 new jobs and more than $90 million in anticipated new capital investment during the last year. It’s one more example that Sugar Land is rapidly becoming a regional employment center.” The project is still in the very preliminary planning stage, as the company has not yet selected an architectural design firm or general contractor. The company expects to make these selections in the first quarter of 2007 and begin construction shortly after. The plant, which will require a capital investment of close to $20 million, must be complete and employ at least 40 people before January 1, 2008, in order to qualify for the incentive.

Advance Polybag was established in 1986 and has become one of the world’s largest manufacturers of polyethylene bags. The company has four plants in the U.S. (Oklahoma City, Oklahoma; Las Vegas, Nevada; Kenner, Louisiana; and Eldridge, Maryland) and one in Thailand. The company specializes in the design, die-cutting and manufacturing of plastic retail bags for supermarkets, convenience stores, fast food restaurants and other retailers nationwide.

Advance Polybag is not the only company to relocate to Sugar Land from New Orleans in the wake of Katrina. Mechanical Equipment Company Incorporated (MECO) a high-tech water purification and desalination equipment manufacturer was based in New Orleans, Louisiana, until Hurricane Katrina devastated the plant there with 17 feet of water destroying the company’s equipment and inventory. MECO opened a 50,000 square foot clean room assembly plant in the Sugar Land Business Park in early 2006. The company also opened a fabrication and machine shop in Covington, Louisiana, at the same time. The company originally came to Sugar Land as a temporary measure, but has decided to make a long-term commitment to the area by relocating its headquarters to the area as well. There are 100 employees at the plant including 35, which relocated from New Orleans.

MECO was founded in 1928 and was incorporated in the 1940’s. The company’s products are used in the pharmaceutical industry to process water that is used in IV injections and other water used in medications. The equipment is also used by the oil & gas industry to convert saltwater into drinking water on offshore rigs.

Sugar Land is ranked second in the nation for future job growth between now and 2010, according to the first edition of Best Places to Raise Your Family: The Top 100 Affordable Communities (Published by Wiley, May 2006). It is also recognized as the third fastest growing community in the nation. Convenient location to Houston, a skilled workforce, and strong economic development efforts by the City of Sugar Land have contributed to the high positions in the publication.

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