Page 44 - Plastics News April 2019
P. 44
Business news
Indevco to invest $9.5M in Texas, U.S. withdraws GSP program
create new jobs move likely to affect India’s
plastics exports
ndevco Plastics Inc. Flexible packaging producer is
Iexpanding again. It will add $9.5 million in capital he Office of the
investment and 18 new jobs over the next three years at TUnited States
its plant on Jordan Valley Road, according to newspaper Trade Representative
partners the Longview News Journal.LEDCO awarded on March 4 issued a
Indevco Plastics a $400,000 performance grant Friday press release stating
to aid in the expansion plan. “Indevco definitely made that United States
the right decision in opening a manufacturing facility in would terminate
Longview,” said Wayne Mashe, general manager of Indevco India’s designation
Plastics.Meanwhile, other Longview companies with prior as benef iciar y
performance agreements with LEDCO are exceeding their developing country
initial goals, President/CEO Wayne Mansfield said. ‘A skills under the GSP
issue’ When Dollar General Corp. agreed to build its nearly programme because
1 million-square-foot distribution center in the North it no longer complied
Longview Business Park in late 2017, it signed a more than with the statutory eligibility criteria. The move by the
$7 million incentive agreement that required the company United States (U.S.) to terminate India’s designation as
to average 100 full-time employees this year and reach at beneficiary developing country under the Generalized
least 400 workers by the end of 2023. So far, there are 430 System of Preferences (GSP) programme because it no
employees already working at the distribution center with longer complied with the statutory eligibility criteria,
two months remaining until it opens, Mansfield told LEDCO
is likely to affect plastic exports from India according
to Plexconcil. “At the Plastic Export Promotion Council
(Plexconcil), we conducted an analysis and found that
in India's case, the GSP concessions extended by the
U.S. amounted to a duty reduction of $30 million per
annum on imports of plastic products worth $600 million
for the period January to December 2018,” said Ravish
Kamath, chairman, Plexconcil. He said some of the
product segments which may face a decline in exports
to U.S. due to withdrawal of GSP concessions include
plastics raw materials, consumer and houseware items
and polyester films. Sribash Dasmohapatra, executive
board members Friday. He predicts the facility could soon director, Plexconcil said, “We feel that the withdrawal
reach 600 workers with average wages rising to about $16 of GSP benefits would negatively impact the exports of
an hour by the end of 2019. Elsewhere, MG Foods currently Plexconcil member-exporters to the U.S. and we have
is at 134 employees at its Longview facility, which is almost requested the Union Commerce Ministry to engage
30 workers more than the 105-employee goal the company in discussions with the U.S. to allow continuation of
set in its ongoing performance agreement with LEDCO, GSP and or incentivise exporters through some other
Mansfield said. INDEVCO Group (Industrial Development measure as they may deem appropriate.” In 2018,
Company), an international group of manufacturing India and the U.S. reported a bilateral trade (only
companies, manufactures corrugated, plastic and paper merchandise goods) worth $84.9 billion, up 20% from
packaging, tissue, as well as household, institutional, and the previous year.The trade was in favour of India,
personal care disposables. The group, headquartered in which reported a surplus of $17.9 billion during 2018,
Ajaltoun, Lebanon, operates in over 65 countries and down 15.1% from $21.1 billion a year earlier.
employs around 9400 people in 60 companies.
Plastics News April 2019 44