Atlanta-based Pratt Industries has broken ground on its $500 million paper mill and box factory in Henderson, Kentucky.
According to a news release from Kentucky Gov. Andy Beshear’s office, Pratt broke ground on the first of two facilities that will total 1.15 million square feet along Kentucky Highway 425 in Henderson County.
“As work continues to help our western Kentucky communities heal after last week’s unprecedented storm, the arrival of Pratt Industries to this region will be an important part of that recovery process,” Beshear says. “Not only is this new operation going to create quality job opportunities for hundreds of Kentucky residents, the generosity shown by Pratt leadership during this difficult time also proves the company will be a perfect fit for Henderson and the surrounding area. I want to thank Anthony Pratt and his team for their commitment to the commonwealth.”
In an earlier announcement made in July, the company reported that it plans to begin construction on the paper mill in March 2022, with completion slated for the fall of 2023.
The project investment has increased from $400 million to $500 million to support the construction of a 500,000-square-foot box factory that will produce corrugated sheet and boxes, including pizza boxes and packaging for distributors and big box stores with paper sourced from the 650,000-square-foot paper mill that will produce 100-percent-recycled paper. Pratt says it plans to complete construction of the box factory by 2023.
“It’s an honor to join Gov. Beshear and the community of Henderson as we break ground on our $500 million green manufacturing investment,” says Anthony Pratt, executive chairman of Pratt Industries. “Our Henderson paper mill and box factory is the single biggest investment our company has ever made and will create 1,000 jobs, including American, green-collar manufacturing and construction jobs. Our thoughts and prayers are with the people of western Kentucky at this difficult time and in support of those communities, I’m honored to pledge $1 million to assist with tornado relief and recovery efforts in Kentucky."
He continues, “I commend Gov. Beshear for his leadership during this disaster and commit to supporting Kentucky as it recovers from this tragic tornado outbreak. Gov. Beshear’s leadership has made Kentucky a great place to invest in and we see further investment potential in this dynamic state. I believe in regional manufacturing. It’s the heart and soul of America, and there is no better place than Kentucky.”
According to the report from Gov. Beshear’s website, the Kentucky Economic Development Finance Authority (KEDFA) also approved an incentive agreement with Pratt under the Kentucky Business Investment program. The performance-based agreement can provide tax incentives based on Pratt’s investment and annual job and wage targets. KEDFA also approved Pratt for tax incentives through the Kentucky Enterprise Initiative Act, which allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing. By meeting its annual targets over the agreement term, Pratt can be eligible to keep a portion of the new tax revenue it generates, and the company may claim eligible incentives against its income tax liability and wage assessments.
To date, Pratt operates paper mills in Georgia, Indiana, Louisiana, New York and Ohio.