Berry Plastics’ production exceeding plans for growth

Berry Plastics, 2330 Packer Road, is going through a long-term expansion called Project Gateway. The expansion has added a new manufacturing area. Early in March, concrete pads for electrical installations were poured.

PackerWare is entering a “gateway” to its future.

Before beginning a long-term expansion in 2006, the division of Berry Plastics Corp., located on 20 acres in northern Lawrence, already was a large and successful private-sector company that produced millions of plastic items such as cups, bowls and containers.

Now in its second phase of an expected four-year expansion, the 20-acre plant is practically out of space.

The focus of the expansion, dubbed “Project Gateway,” is on adding thermoform machines, which are heavily powered to produce various plastic products.

“The thermoform is a new process for Lawrence,” said Steve Brown, plant manager for the Lawrence division of the Berry Plastics group. “We’re adding more people, and it’s a gateway to a new era.”

Each machine constitutes about a 25 percent growth in the company’s revenue. To paint a picture of their volume of work, just think of all the 32-ounce plastic cups Taco Bell has in the nation. The majority of them were produced by Berry Plastics. They also sell seasonal items and plastic wares to Wal-Mart such as Halloween candy bowls or summer drink cups.

The Lawrence PackerWare plant was chosen in 2006 to house and use several thermoform machines. The machines were transferred from the Berry headquarters in Evansville, Ind., the company’s largest production plant. That plant was running out of room.

“Expansion in Evansville reached a point it could only reach so much,” Brown said.

Several sites across the country, including Lawrence, were selected to receive an annex of the Indiana plant. Lawrence was chosen for its geographical location, strong work force and proximity to Evansville for training purposes, Brown said. The Lawrence City Commission approved a tax abatement for the plant’s expansion.

One year later, officials at the Lawrence plant at 2330 Packer Road, which is along North Iowa Street north of the Kansas Turnpike, can see they may have to expand in the future as well.

One month ago, the plant entered its second phase, which has added one machine and about 40 employees. Brown said the second phase needs to be in process by mid-2008. About 35 employees are needed per machine, Brown said. Two machines were added in the first phase along with 75 employees.

Looking ahead

So far, everything has been housed in what was once a 100,000-square-foot warehouse space. In the next at least two phases, four more machines will be added.

The plant leased nearly 300,000 square feet of warehouse space from the former E and E Display Group building near the corner of 29th Street and Haskell Avenue. But now there is “no warehouse left,” Brown said. They have been using trailers as storage.

“As we grow more and more, yes, we are going to need more warehouse space,” Brown said. “We’re looking at possible options that are going to be available to us.”

Brown said the third and fourth phases are in their planning stages.

“More phases could be added,” he said. “There is a little more space here onsite, but it would mean bricks and mortar. We are beginning to reach the threshold of this site.”

Employment opportunities

“We consider ourselves an employer of choice in town,” said Christy Campbell, the company’s human resources manager. “(We’re) one of the biggest employers in town and competitive.”

George “Bear” Eoannou said he is proud to have been a part of PackerWare for 30 years. The molding manager said he’s pleased to see it continue to grow.

“It’s not only wonderful for us but for the city as well,” he said.

The expansion will roughly add 35 people with each machine during the process to add to the approximately 450 employees the plant already employed. Brown said it will eventually taper off in the later phases as fewer supervisors will be needed.

And as the company has grown and made acquisitions, more employees from the same industry have joined PackerWare.

“We’ll make an acquisition and blend those people into Berry and it’s night and day different,” Brown said. “It really it is. It stands out how strong Berry is financially, how well we take care of our employees and new technologies and that fits right back into our mission statement.”

Eoannou said the job has a big impact on his life.

“In 30 years, everything I’ve done in my life, from buy a home to putting two kids in college, this plant has been very, very good for me,” Eoannou said.