Michigan City Paper Box co. plans $700K expansion

MICHIGAN CITY | A longtime Michigan City company is expanding in a move designed to shore up its future in an increasingly competitive marketplace.

Michigan City Paper Box Co. plans on spending $725,000 on two new fully automated lines.

Al Hoodwin, CEO of the firm that was established in 1904, said the machinery will allow the plant at 1206 Pine St. to make larger retail boxes to help better compete in today's market for retail packaging.

Previously, whenever orders came in for larger boxes, that business was outsourced to other companies in Indiana and out east, Hoodwin said.

But Hoodwin said the business environment is now extremely competitive, creating a need for Michigan City Paper Box to cost effectively manufacture in–house a wide range of boxes for its customers.

''There are some very large contracts that we have been unable to get in the past since we couldn't manufature all the size boxes our customers needed," he said. "This machinery will give us the ability to win these contracts and keep the business local.

''This investment isn't without risk, but its a necessary one in order to continue to be Michigan City's oldest manufacturer.'' Hoodwin said.

The expansion is projected to add four jobs to the existing 54-member workforce that has a current payroll of more than $1.6 million.

The new positions will generated nearly $90,000 in additional payroll, according to company officials.

''Michigan City Paper Box is a long term industrial citizen ... that is successfully competing in the world market. We are pleased they have elected to reinvest in our community,'' said Michigan City Mayor Chuck Oberlie.

Tax abatement from the city is being sought on the new investment.

If approved, Oberlie said the company will start paying a discounted tax in the second year of the abatement and by the 10th and final year, full taxes on the new equipment will be paid.

''Giving companies an incentive such as tax abatement shows our willingness to support and encourage them to grow at the local level," said Kevin Kieft, business development manager for the Michigan City Economic Development Corp.