Bio Pappel subsidiary to add Texas plant

New McKinley Packaging location will create products from recycled-content board.

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December 3, 2021

The Dallas-based McKinley Packaging subsidiary of Mexico-based Bio Pappel has announced it will locate its seventh packaging plant in the United States in Lancaster, Texas. The 500,000-square-foot, rail-served building will require some 100 employees in total when running at full capacity across three shifts, the packaging producer says.

“We started looking at properties back in July 2020 and decided, as a company, that Lancaster is a market we want to grow in,” says Anthony Garcia, McKinley’s vice president of operations.

Bio Pappel says it launched expansion efforts in the U.S. seven years ago. Since then, McKinley Packaging has represented the company’s strategic growth success with its now seven plants, two paper mills and five recycling centers across the U.S. markets, according to the company.

Bio Pappel procures old corrugated containers (OCC) and other grades of scrap paper to make recycled content paper and board at several facilities in both Mexico and the U.S.

Efforts to find the right spot for McKinley’s seventh packaging plant also involved Dallas-based Global Site Location Industries (GSLI), according to a news release issued jointly by McKinley and GSLI. That firm describes itself as a site selection consultant and economic development marketing agency.

“GSLI’s process provided us with the opportunity to truly evaluate multiple markets that had the potential to support our company strategies, helping us identify the right location first,” says Garcia. “In addition, GSLI was very valuable in helping us review incentive packages and navigating the negotiation process. The team providing insight on how different incentives compared across different communities as we determined location.”

Driven by its emphasis on sustainable operations and recycled materials, McKinley Packaging continues to aim for zero-discharge water operations upon reaching capacity, say the two companies, providing an example of how McKinley Packaging seeks a “green” legacy for the company.

“McKinley Packaging has been great to assist in the finalization of their site and incentives,” comments Eric Kleinsorge, GSLI’s CEO and board chair.

“Lancaster wasn’t a “first-thought” choice, but after conducting our Road Show Tour and analysis they were definitely the right choice,” says Kleinsorge. “Shane Shepard and his Lancaster Team were excellent and responsive when working with the city. This made a big impact for McKinley. We look forward to working with them on future expansions and are excited about breaking ground [for] this new facility.”