Equipment loan part of the package for economic growth in Russell County
Borrower : Industrial Development Authority of Russell County
Where : Lebanon, VA
Loan Amount : $2.7 million
Project Type : Equipment loan
Opportunity
Economic growth requires a long-term vision and strategy. The Industrial Development Authority (IDA) of Russell County recognized that Southwest Virginia could attract global manufacturers because of its access to Interstate 81 and a readily available workforce.
To proactively foster a supportive business climate, the IDA constructed a 76,000-square-foot shell building in Lebanon, Va. The facility is the last property available for lease and could be built out to meet any manufacturer’s requirements. So, when Toronto-based manufacturer Polycap, started looking for sites to open its first manufacturing facility in the U.S., the IDA of Russell County was more than ready.
Polycap (known in Canada as Plasticap) produces specialty caps for plastic packaging used in multiple industries, including personal care, home products, food, and pharmaceuticals. With plans now to move its North American headquarters to Virginia, Polycap has been a critical supplier for major owners and distributors for more than half a century. Polycap will keep its Canadian production facility, and the Russell manufacturing complex will support its growing number of domestic customers.
Solution
Small Business Lending
Bringing economic growth and creating new jobs with a manufacturer known for technological advances in Southwest Virginia made the project attractive to the Virginia Community Capital team. VCC supported the project with a $2.7 million equipment loan to the Industrial Development Authority as part of an integrated package to support local development. The package includes a $130,000 Opportunity Fund grant approved by Gov. Ralph Northam, and a loan up to $3.37 million from the Virginia Coalfield Economic Development Authority to build out the shell building. Additionally, the Virginia Economic Development Partnership will support job creation with consultative services and funding to companies creating new jobs or experiencing technological change.
Impact
Competing successfully against Ohio and Ontario to recruit Polycap, Russell County did its due diligence, put in the time, and earned the business. Polycap is investing $7.7 million to establish the manufacturing facility, which will initially create 48 jobs. Within five years, Polycap is expected to have a workforce of 200.
The new manufacturing facility is critical for Polycap to remain a market leader in an industry where larger companies are constantly acquiring smaller competitors. Polycap will be better positioned to invest in both cap molds and molding machines to meet growing demand. Russell County provides Polycap with a diversified labor force, increased capacity, closer proximity to its clients, and better access to potential customers. The project helps to further diversify Southwest Virginia’s manufacturing sector, adds to the excellent base of manufacturing companies already operating in the region, and provides good jobs to Russell citizens and those in the surrounding region.