Finnish-based Company Will Make $109 Million Investment and is Projected to Create Up to 160 New Jobs
CHICAGO – In his continuing efforts to expand the economy and create more jobs, Gov. Rod R. Blagojevich today announced the awarding of more than $4.5 million in Opportunity Returns support to UPM Raflatac, one of the world’s leading suppliers of paper-based and film pressure sensitive labelstock, as part of its estimated $109 million investment to open a new manufacturing facility in Dixon that will create about 115 new jobs within the first two years of operations and increasing to an estimated total of 160 jobs within five years. This business investment package comes as a part of Opportunity Returns, the Governor’s comprehensive economic development strategy to create jobs and spur more growth in Northwest Illinois.
“Companies certainly have many choices for where they want to locate, and this is another good example of a company choosing Illinois to expand its business. By encouraging investment, not raising taxes and working with unique, innovative and international companies like UPM Raflatac, we are strengthening the foundation of the manufacturing industry, helping to create more opportunities and better jobs,” Gov. Blagojevich said.
UPM Raflatac is part of UPM, one of the world's leading forest products companies. UPM Raflatac began production of pressure sensitive labelstock in the early 1970s in Tampere, Finland and, in less than 30 years, the company has grown to become one of the world’s leading manufacturers of pressure sensitive sheet and roll labelstock. In addition, the company is at the global forefront in the development and high-volume production of radio frequency identification (RFID) tags and inlays. The company has a global service network consisting of eleven factories on five continents and a broad network of terminals and sales offices worldwide, with 2,300 total employees. The company currently has one U.S. production facility in Fletcher, North Carolina, and, as a result of rapid growth and increasing market share, there is a demand for a second production facility. Construction in Dixon will begin next month with the opening expected in 2008.
“Our target is to be the number one choice of label converters everywhere we operate,” says Heikki Pikkarainen, President, UPM Raflatac. “With the Dixon investment, we will complete our service network in the U.S. market, consisting of our labelstock and RFID tag and inlay factories in Fletcher, North Carolina and the slitting terminals in Wilkes-Barre, Pennsylvania and Ontario, California. Our Fletcher operation has been a great success, and we have received an extremely favorable customer reception for our product and service offering in North America. The Dixon factory will enable us to grow further in North America, where the market growth is annually approximately 5 percent.”
“This investment continues to demonstrate UPM Raflatac's strong commitment to the North American marketplace. The Dixon, Illinois investment will enable us to create a new operations platform in the heart of the Midwest marketplace where we can further enhance our service capabilities for our partner customers. UPM Raflatac is excited to be a member of the Illinois business community, and we thank Governor Blagojevich for his support,” said Jouko Lähepelto, Senior Vice President, Americas, UPM Raflatac
The Illinois Department of Commerce and Economic Opportunity (DCEO) is administering the business investment package. It includes Economic Development for a Growing Economy (EDGE) corporate income tax credits over the next ten years based on job creation; Employer Training Investment Program (ETIP) job training funds that will help enhance the skills of its workforce; a grant for infrastructure costs and site improvements; as well as additional financial benefits, such as sales tax exemptions and tax credits for job creation, resulting from the company’s location within an Enterprise Zone
“We are thrilled to welcome UPM Raflatac to our community, which will serve as an engine of economic growth and job creation for many years to come. My many thanks to Gov. Blagojevich and DCEO for their part to help make this possible for our families in Dixon and across the Sauk Valley,” said Dixon Mayor Jim Burke.
“Gov. Blagojevich and I are excited to have such a world class, innovative company like UPM Raflatac as part of our ever growing business community along I-88 and across the state. By investing in companies that are investing in Illinois, we are creating a stronger business climate, creating more jobs and keeping our economy moving forward,” DCEO Director Jack Lavin said.
Gov. Blagojevich’s Opportunity Returns regional economic development strategy is the most aggressive, comprehensive approach to creating jobs in Illinois’ history. Since a one-size-fits-all approach to economic development just doesn’t work, the Governor has divided the state into 10 regions – each with a regional team that is empowered and expected to rapidly respond to opportunities and challenges. Opportunity Returns is about tangible, specific actions to make each region more accessible, more marketable, more entrepreneurial and more attractive to businesses. It is about upgrading the skills of the local workforce, increasing the access to capital, opening new markets, improving infrastructure, and creating and retaining jobs. Opportunity Returns is about successfully partnering with companies and communities, both large and small, to help all of Illinois reach its economic potential.