E.Hofmann Packaging breaks ground on $43 million facility bringing 164 jobs to Madisonville

E.Hofmann Packaging breaks ground on $43 million facility bringing 164 jobs to Madisonville

Economics
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Jeff Noel Secretary, Office of the Secretary | Kentucky Cabinet For Economic Development

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E. Hofmann Packaging, a Canadian plastics packaging company, has started construction on its first U.S. facility in Madisonville, Kentucky. The $43 million project is expected to create 164 jobs in Hopkins County and marks the company's second production site overall.

Governor Andy Beshear attended the groundbreaking event alongside local officials and company leaders. “Our economic momentum is made possible by great companies continuing to choose Kentucky to grow and do business,” said Gov. Beshear. “This project not only brings a significant investment to the local economy of Hopkins County; it’s also creating 164 quality job opportunities for the talented workforce of the region. I am excited to celebrate E. Hofmann Packaging’s next step toward becoming operational in their new Kentucky home.”

The planned facility will be 100,000 square feet and include new equipment, machinery, automation, and molds. Construction is scheduled for completion in 2026.

“We are extremely blessed to have found such a welcoming town in Madisonville as the site for our U.S. expansion,” said E. Hofmann Plastics President and CEO Paul Kalia. “We appreciate the swift action taken by local and state authorities; their support has been invaluable as we embark on the largest project in our company’s history. We look forward to building lasting relationships in the public and private sectors while driving economic growth here in Madisonville.”

E. Hofmann Packaging USA LLC operates as a subsidiary of Ontario-based E. Hofmann Plastics Inc., which was founded in 1984 and has expanded its services over time to include extrusion and thermoforming with a focus on food customers.

Local leaders expressed optimism about the impact of this investment on the community.

“This is an exciting time in Hopkins County. E. Hofmann Packaging is a great company and community partner. We truly appreciate Paul, Sameer and Vikram for putting their trust in us," said Hopkins County Judge/Executive Jack Whitfield Jr.. "This groundbreaking is the first step on a long road, and I look forward to seeing the progress of this facility and what it will mean to Hopkins County.”

Madisonville Mayor Kevin Cotton commented: “The groundbreaking of E. Hofmann Packaging represents a major step forward in Madisonville’s continued economic growth. This investment strengthens our manufacturing base, creates new job opportunities for local families and demonstrates the power of collaboration between city, county, state and private partners. We’re proud to welcome Hofmann to Madisonville and grateful for their investment in our city’s future. Together, we’re building a stronger, more vibrant Madisonville.”

Wade Williams, president of the Madisonville-Hopkins County Economic Development Corp., stated: “Breaking ground today with E. Hofmann Packaging is the result of months of collaboration and a shared commitment to building something meaningful for Madisonville and Hopkins County. This project represents more than a new facility – it reflects growing confidence in our community’s workforce, sites and leadership. We’re proud to support Hofmann’s expansion and look forward to the long-term impact this investment will have on local jobs and industrial growth.”

Kelly Forbes from the same organization added: “Today’s groundbreaking is proof of what’s possible when a community moves in the same direction. The ability to provide speed-to-market for E. Hofmann Packaging is a direct result of the collaboration and dedication shown by our city and county leadership, utility partners and economic development team. When everyone works together with a shared goal, we create the conditions for success – not just for one project, but for long-term economic growth across the region.”

The announcement comes during what officials describe as Kentucky's strongest five-year period for economic growth on record.

Since Governor Beshear took office, more than 1,200 private-sector projects have been announced statewide with over $36 billion pledged investments resulting in more than 62,000 jobs created—an all-time high under any governor's tenure according to state data.

Average incentivized hourly wages have exceeded $26 since 2022 across three consecutive years—a first for Kentucky.

Major projects highlighted by Gov. Beshear include Ford Motor Co.'s BlueOval SK Battery Park ($5.8 billion), AESC's gigafactory ($2 billion), Toyota's expansion ($1.3 billion), among others—solidifying Kentucky's role as an electric vehicle battery production hub (https://kentucky.gov/Pages/Activity-stream.aspx?n=GovernorBeshear&prId=2120).

Kentucky recently recorded its highest number of filled jobs at over two million since 2023 (https://kentucky.gov/Pages/Activity-stream.aspx?n=GovernorBeshear&prId=2096) while maintaining budget surpluses (https://kentucky.gov/Pages/Activity-stream.aspx?n=GovernorBeshear&prId=2059) that contributed to improved credit ratings from Fitch Ratings (https://www.fitchratings.com/research/us-public-finance/fitch-upgrades-kentucky-issuer-default-rating-to-aa-from-aa-outlook-stable-14-09-2023), S&P Global Ratings (https://www.spglobal.com/ratings/en/research/articles/230914-u-s-states-ranking-list-11658763), and Moody’s Investors Service (https://www.moodys.com/news-and-insight/public-sector/kentucky).

Site Selection magazine ranked Kentucky among top states nationally—and second regionally—for economic development projects per capita (https://siteselection.com/issues/2024/mar/the-2024-governors-cup.cfm). It also placed Kentucky second regionally—and sixth nationally—in its Prosperity Cup ranking recognizing effective state-level agencies (https://siteselection.com/issues/2024/may/the-2024-prosperity-cup.cfm).

A recent initiative called New Kentucky Home aims further boost investment attraction efforts statewide (https://kentucky.gov/Pages/Activity-stream.aspx?n=GovernorBeshear&prId=2117).

To encourage E.Hofmann Packaging's investment locally through incentives such as those provided under KBI program or KEIA act via KEDFA agreements last month—eligible companies may retain some tax revenue generated if annual targets are met.

Additionally,the company can access recruitment assistance,training programs,and other workforce resources offered by state providers.

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