By Jim Johnson
SENIOR STAFF REPORTER
Published: October 29, 2014 11:18 am ET
Updated: October 29, 2014 12:12 pm ET

Image By: Schütz GmbH & Co. KGaASchütz food container production. The company's new Missouri plant will make intermediate bulk containers for the North American market.

German packaging company Schütz GmbH & Co. KGaA is expanding its presence in the United States through a $20 million project in Missouri slated to eventually employ 50.

The new development in St. Joseph, Mo., involves an existing building that sits on 7 acres in the Eastowne Business Park as well as a 6.25-acre parcel that could be used for expansion, according to the St. Joseph Chamber of Commerce.

“The location will help us better serve existing and new customers and we look forward to a long-term relationship with the community,” CEO Frederik Wenzel of Schütz Container Systems Inc. (US) said in a statement.

This will be the 10th location in North America for Schütz, which employs 1,000 at existing sites. Eight of the existing locations make packaging, and one makes steel products for the automotive and aviation industries. The new location will serve the agricultural, chemical and food-related industries.

Schütz indicates the new plant will begin producing intermediate bulk containers in the first quarter of next year, according to European Plastics News, a sister publication to Plastics News.

Schütz, on its website, claims to have “the biggest IBC production network in the U.S.” Existing locations in North America include Fontana, Calif.; Winder, Ga.; Plainfield, Ind.; North Branch, N.J., Lexington, N.C.; Perrysburg, Ohio; Pasadena, Texas, and Tultitlan, Mexico, according to the company’s website.

“The investment in additional capacities and the attendant creation of new jobs demonstrate the company’s great commitment to regional customers and markets,” Schütz said in announcing the new plant on its website. “Logistically, the town is ideally situated.”

Iowa, Oklahoma and Colorado also were considered for the new location, the chamber indicated.

“Not only will they add to our strong manufacturing base of employment, but will bring significant investment and new jobs to St. Joseph,” said chamber CEO R. Patt Lilly in a statement.

St. Joseph worked with Buchanan County, the state, the chamber, the Missouri Partnership economic development group and the Kansas City Area Development Council to land the project.

The county is providing what is described as an “interest-free forgivable loan” and the city is expected to grant tax abatements. Kansas City Power & Light Co. also is providing incentives, the chamber said.

Plastics News estimates Schütz’s North American blow molding sales at $40 million.