Vonco Products LLC, a leading manufacturer of flexible packaging and promotional products, is relocating its operations from northern Illinois to Kenosha County, Wisc.
Vonco, which has been creating customized packaging solutions for more than 60 years, has outgrown its current facility in Lake Villa, Ill., and will be moving to an 80,500-square-foot facility in the Town of Salem. The company expects to invest more than $4 million in equipment at the facility and create 86 jobs over the next three years.
For Keith Smith, president of Vonco, the move signifies an opportunity to expand the company’s capacity and capabilities.
“We were very impressed with what the Wisconsin Economic Development Corporation (WEDC) and its partners put together, and we also want to thank the Kenosha Area Business Alliance (KABA) for the role they played in bringing the various parties together to complete this deal,” said Smith. “We’re very excited about what our new location means in terms of delivering solutions for our customers, especially with the launch of our new division focused on liquid-tight packaging.”
To help attract Vonco to Wisconsin, WEDC has authorized the company to receive up to $500,000 in state tax credits over the next three years. The actual amount of tax credits received will be contingent upon the number of jobs created during that time.
Vonco will be the anchor tenant of a new business park being developed by KABA. Vonco is leasing the building from KABA and will have an option to purchase the facility. The company is expected to take occupancy in June 2017. The Town of Salem has created a tax increment financing district to support the Salem Business Park development.
“The Town of Salem is thrilled to welcome an advanced manufacturing company like Vonco Products to our community,” said Pat Casey, Salem town administrator. “We’ve made a commitment to the Salem Business Park and feel that it is an attractive location for business. We’re excited to work with our partners at KABA, M7 and WEDC to attract more investment here.”
In addition to the 86 Wisconsin jobs expected to be created by Vonco, an economic modeling study estimates the project could indirectly generate 96 additional jobs in the region. Those 182 jobs are expected to generate up to $2.2 million in state income tax revenue over a five-year period.
Vonco is the latest company to establish operations in Kenosha County. Since the beginning of 2013, major economic development projects accounting for more than 6,000 new jobs and nearly $1 billion of capital investment have been announced, completed or are underway in the county. Companies that have new facilities in Kenosha County include Amazon, ULINE, InSinkErator, Meijer, Niagara Bottling and Gourmet Foods International.