Royal Plastics' Move Means Jobs

April 25, 2003
| By Katy Rent |
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JAMESTOWN TOWNSHIP — By deciding to move its headquarters and expand manufacturing in Jamestown Township instead of in Tennessee, Royal Plastics will directly and indirectly create 1,256 new jobs for Michigan workers.

More than 800 of those jobs reportedly will be direct hires at the company’s new facilities.

According to Kenneth Rizzio, executive director of the Ottawa County Economic Development Corp., if the firm’s five-year expansion plans pan out, Royal Plastics will become the largest plastics manufacturer in Ottawa County — and the seventh largest manufacturer of any kind in the county.

“I am delighted with Royal Plastics’ continued commitment to the state of Michigan and to the Ottawa County area in particular,” Rizzio said.

According to earlier announcements from the Michigan Economic Development Corp., the firm plans to invest about $35 million in new equipment and new facilities over the next five years while also creating new jobs.

In making the initial announcement about Royal’s decision late last year, Doug Rothwell, then president and CEO of the Michigan Economic Development Corp., termed the firm’s growth “phenomenal” and said it was a testament to the company’s business practices, management and workers.

“Royal Plastics is representative of the efficient companies that will be powering Michigan’s economy and creating new jobs in the years to come,” Rothwell added.

Royal Plastics manufactures plastic injection-molded products for a variety of industries, including automotive and furniture manufacturers.

The privately held firm was formed in 1987 and serves customers throughout the United States and Europe from three manufacturing plants located in Jamestown Township and Hudsonville.

An MEDC incentive package, including a Single Business Tax credit valued at approximately $13.6 million over 20 years, helped convince Royal Plastics to expand its manufacturing operations in Michigan, rather than move them to Tennessee.

Royal’s president, Jim Vander Kolk, said at the time, “We are excited that the state of Michigan and Jamestown Township have provided incentives that will allow our continued growth in West Michigan.”

He explained that the new facility — on which construction has yet to begin — and its new equipment will be key in supporting Royal Plastics’ growth over the next five years in “helping our customers meet their objectives, benefiting the local community and providing new jobs for West Michigan.”

According to an economic analysis conducted by the University of Michigan, the Royal Plastics project will generate a total of 1,256 jobs in the state by 2022, including up to 828 direct hires by the company.

Conventional economic analysis reports that each new manufacturing job can create three to four new jobs in other sectors of the local economy.

Aside from that, MEDC asserts that the Royal Plastics’ development also will provide an estimated $70.8 million in revenue to the state over the life of the Single Business Tax credit, resulting in a net gain for the state of more than $57 million.

The project is expected to generate more than $886 million in personal income during that time, not to mention tax revenues for local units of government.           

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