Case Studies Grupo Phoenix
Grupo Phoenix Finds the Perfect Package in Virginia
Growth Trajectory in Pulaski County
Grupo Phoenix, a Tekni-Plex consumer products business and global manufacturer of rigid packaging containers, first established its North American headquarters in Pulaski County in May 2010, investing over $20 million and creating 240 jobs. With the long-term goal of penetrating the East Coast market and becoming the gold standard for innovative packaging worldwide, the Colombia-based company anticipated a steady growth curve in Virginia from the start.
Grupo Phoenix expanded twice more in 2011 and 2012, creating an additional 200 jobs and nearly $40 million in capital investment in Pulaski County. The company eventually reached a phase of its strategic plan that required enhanced operations and production, including upgrades to automated production equipment that could service large-scale customers in a greater variety of industries. Grupo Phoenix’s facility in Pulaski County offered a proven track record of success, along with the dedicated workforce and local partnerships to get the job done.
The Virginia Solution
The Sky is the Limit in the Commonwealth
The Tekni-Plex operation (formerly Phoenix Packaging) serves as the company's North American headquarters and gateway into the East Coast market. The company originally selected the Pulaski County Corporate Park in 2010 for its ready-made sites, accessibility to major interstates such as I-81 and I-77, and available rail transport.
By 2017, Grupo Phoenix was looking to expand once again, and the corporate park offered an additional 250,000 square feet of space to accommodate the company’s next phase of growth. The ability to increase its capacity, in combination with the site's strategic location, made Virginia a strong contender for Grupo Phoenix’s $48.7 million-dollar capital investment.
A Talented and Reliable Workforce
Similar to its site requirements, Grupo Phoenix’s workforce needs have been consistently met since its establishment in Virginia. The company is now the second-largest employer in Pulaski County, thanks to the New River Valley’s extended labor force of nearly 400,000 that fuels the region’s vibrant manufacturing industry cluster.
Grupo Phoenix’s latest production upgrades required proficiency in robotics, advanced handling and shipping, and various other 21st-century skills. The company maintained a close relationship with local educational institutions Virginia Tech and New River Community College, where it previously sent employees for leadership training and invested in industry-relevant research. Grupo Phoenix counted on this partnership to supply a pipeline of talented graduates across the skills spectrum – from manufacturing to engineering to information technology – and was confident the New River Valley could keep pace with its evolving workforce needs.
The Commonwealth is the destination of choice for industry-leading companies from around the world. At the local level, Pulaski County has distinguished itself as a hub for international business as well, boasting a record nine international companies, including Volvo Trucks from Sweden, Korona Candles from Poland and Red Sun Farms from Mexico. These major employers contribute nearly 5,000 direct jobs in the region and have thrived with access to Pulaski County's flexible incentive and technical assistance offerings.
Without a cookie-cutter incentives program in place, County administrators and the local Industrial Development Authority were able to work closely with Grupo Phoenix to design a local incentives package and financing options that could meet its unique needs. Pulaski County optimized the lease financing and issued a line of credit to the company to support the construction of the building.
The partners also assisted with processing VISAs through immigration for Grupo Phoenix’s top-level employees and connecting the company to the region’s existing ex-pat community. Their willingness to act as a one-stop shop for Grupo Phoenix made its growth in Virginia more seamless and helped to mitigate many of the challenges facing global companies that expand in the U.S. This enthusiastic support from local, regional, and state partners would prove pivotal to Grupo Phoenix’s decision to grow in Virginia.
Grupo Phoenix Chooses Virginia (Again)
In 2017, after a competitive nationwide search, Grupo Phoenix committed to the third expansion at is manufacturing operation in Pulaski County. The $48+ million project included 145 new jobs, bringing the company’s total capital investment since 2010 to $106.2 million and 585 new jobs for the citizens of the New River Valley. Grupo Phoenix’s continued expansion and investment in Virginia is a strong testament to the wealth of opportunity available to global companies in the New River Valley and the Commonwealth.
In 2023, Grupo Phoenix completed its railroad line to the site, enabling connection directly from the Radford terminal to move raw materials into the Tekni-Plex plant. This increase in infrastructure is essential as the manufacturer doubles its capacity to 54,000 tons per year. The company's investment in rail line infrastructure at the facility reflects its long-term commitment to Pulaski County and positive growth trajectory in Virginia.