Paper manufacturer coming to Rockdale (May 26, 2011)
The Development Authority of Rockdale County approved a $22 million dollar bond on Wednesday for cardboard manufacturer Corrugated Supplies, LLC to help finance start up and operation costs.
The seven members of the Authority unanimously voted to approve the bond at the Wednesday called meeting. Also in attendance were Corrugated Supplies CEO John Potoscnak and CFO Mike Rubinstein.
Using the Development Authority as the vehicle for the bond gains Corrugated Supplies some tax incentives, said Authority chair Mike Sullivan. The company can also draw from as needed and would not have to pay interest on the portion not currently being used. This would allow the company to own its own equipment and would enable it to more quickly start a second line. The overall project is estimated to cost about $28 million.
"This is the biggest startup of a company moving to Rockdale County in eight or ten years or more," said Sullivan. "This is huge."
Sullivan pointed out the inital payroll was estimated at $3.3M for about 50 jobs and the average salary would be about $60,000.
Development Authority Treasurer Robert Maddox said the bonds were a tool available to local Development Authorities to encourage growth and investment in the community.
The corrugated sheet-feeder plant will be set up in a 444,000 square foot building leased by Corrugated at 1475 Ga. Highway 138, which was formerly Solo Cup's distribution warehouse space.
The plant is Corrugated Supplies Company's fourth in the country and first in the state. The company employs about 200 and has plants in Bedford Park, Ill., Culman, Ala. and New Haven, In.
The Development Authority has previously issued bonds for Visy, for the creation of their biomass power generator, and Pratt Industries.