Elopak, a Norwegian packaging company that specializes in producing cartons for milk, juice, and other liquid food products. It had the grand opening for its first carton production plant in the United States on Wednesday. The celebration included remarks by Elopak’s CEO, Little Rock Mayor Frank Scott Jr., and a pre-recorded video of Gov. Sarah Huckabee Sanders.
Elopak executives emphasized the company’s commitment to sustainability, noting that one of their key strategic goals is to take advantage of a global souring on plastic to grow the business.
“This plant — and this is why this is such a momentous, historic event for us — is a key milestone in our strategy. It gives us the possibility to offer more customers and more consumers sustainable packaging solutions with the latest development in mind for many, many years to come.”
– Elopak CEO Thomas Körmendi said.
The new facility, which was built in less than 12 months on swampland near the Port of Little Rock, will employ around 100 people, company officials said.
Körmendi gave remarks to a standing-room-only crowd — some from as far as Japan — at the facility’s grand opening. Körmendi touted the business he leads as the largest liquid carton company in the world while stating that Little Rock “fits perfectly” into Elopak’s larger global strategy.
Scott said that it was not lost on him that a large global company was coming into one of the smallest U.S. states, crediting the work of the Little Rock Port Authority and the Little Rock Board of Directors for their recruitment efforts.
“We all are working every day with a lot of grit and grind to make sure that we can land a company like you, and so as you’re having this repackaging tomorrow across this world, we’re privileged; we’re grateful that you’ve decided to come to Little Rock.”
– Scott
Meanwhile, Sanders, in pre-recorded remarks, held up signature policy moves by her administration as the reason for job creation and growth in the state.
“Arkansas beat out several other states for this project, showing that cutting taxes, investing in education, and building up our workforce is the key to bringing new companies to our state. Thank you to all of Elopak’s leadership for your investment, not only in the United States but in the Natural State.”
– Sanders
Clint O’Neal, executive director of the Arkansas Economic Development Commission, emphasized tax cuts as well, saying that even more could be on the horizon.
“We’ve had many great successes over this past legislative session; I would call it the best economic development session in the last couple of decades. We’re committed to making this place a great business environment. We don’t want companies to worry about, ‘Is this a state that’s getting ready to increase my taxes?’ You can be confident in Arkansas that we have reduced taxes, and if anything, this is a state that’s going to continue to reduce taxes to continue to create an environment that you can find success in.”
– O’Neal said.
Körmendi said in an interview that Little Rock had been “very attractive” to the company because it checked off many of the boxes Elopak had when evaluating where they would put the U.S. plant.
“Our customers will source their packaging material from plants that are close by, which is really also why we need one in the U.S.,” he said.
Körmendi declined to provide estimates for how much Elopak would produce at the Little Rock facility in the coming months, but Elopak Americas President Lionel Ettedgui said in an interview that the capacity of the new Little Rock facility’s first production line sold out quickly. The company plans to open a second line within the coming year.
“We have also initiated and will be inaugurating the next line next year, the first half of next year, We are absolutely committed to filling up the factory.”
-Körmendi
Elopak exists in a low-competition industry, Ettedgui added, making the investment in U.S. operations low-risk with high return.
“It’s a very specific market. When joining Elopak, I did my research and I found that sustainability and innovation were part of their DNA, in an industry where you don’t see that many innovations… The company walks the talk.”
– Ettedgui
Körmendi did not appear concerned about the uncertain tariff situation the U.S. finds itself in when asked about whether the moves by President Donald Trump could affect production at the facility. Their facilities in Canada and Mexico are covered under free trade agreements, giving them more flexibility, he said.
“We have more than 90% of the material we use—93%, I think, actually, comes from the U.S. Low levels of production have already started at the plant.
-Körmendi
About the International Food Production Plant in U.S.
The United States is the world’s second-largest manufacturer after the People’s Republic of China, with a record-high real output in 2021 of $2.5 trillion. These companies say they’re investing more in U.S. manufacturing as tariffs go into effect. which held up signature policy moves by her administration as the reason for job creation and growth in the state.