E. Hofmann Packaging invests $43 million to open plastics manufacturing facility in Kentucky 

E. Hofmann Packaging invests $43 million to open plastics manufacturing facility in Kentucky 

July 18, 2025
The company’s new U.S. facility will support rising consumer demand and strengthen its presence in the North American market. 

E. Hofmann Packaging has announced plans to open a plastics manufacturing facility in Madisonville, Kentucky. The company, which produces rigid plastic packaging, is investing $43M into the project and creating 164 full-time jobs. 

To meet growing U.S. demand, E. Hofmann Packaging will construct a 100,000-square-foot production facility equipped with new machinery, automation systems, molds, and related equipment. Construction is expected to begin this year and conclude in 2026. The Madisonville location will serve as the company’s second production facility and first operation in the United States. 

To support the project, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved a 15-year incentive agreement under the Kentucky Business Investment program. The agreement includes up to $2.3M in tax incentives, based on the company’s investment and annual targets that include the creation and maintenance of 164 full-time Kentucky jobs with an average hourly wage of $28 including benefits. The company was also approved for up to $300K in additional incentives under the Kentucky Enterprise Initiative Act (KEIA), which allows for the recovery of sales and use tax on eligible expenses. 

E. Hofmann Packaging may also access Kentucky’s workforce service resources, including recruitment support, job placement services, customized training programs, and training incentives. 

What people are saying 

In a recent quote, Paul Kalia, president and CEO of E. Hofmann Plastics, said, “We are thrilled to announce the opening of our new state-of-the-art factory in Madisonville, marking a significant milestone as our first U.S. facility. We are deeply honored to join this vibrant community and tap into its talented workforce. The enthusiastic support and collaboration from local and state authorities have been exceptional, making this expansion a reality. This facility strengthens our commitment to becoming a leading player in the North American market, and we look forward to building lasting relationships and driving economic growth in Madisonville.” 

Andy Beshear, Governor of Kentucky, added, “Team Kentucky’s manufacturing sector continues to play a major role in our state’s soaring economy. Once again, a quality international company has chosen to expand and do business in our New Kentucky Home, taking advantage of our unique location and talented workforce. I want to thank the leadership of E. Hofmann Packaging for their belief in this great state and look forward to their future success in Hopkins County.” 

Manufacturers investing in Kentucky 

Tyson Foods invests $23.5M to expand and modernize protein manufacturing facility in Kentucky
The project will support increased production capacity and help retain over 1,100 jobs at the Henderson County facility. 

Process Machinery Inc. invests $11.5M to expand manufacturing facility in Kentucky 
The expansion will include a new paint facility, additional manufacturing space, and upgraded equipment to support growing customer demand. 

Shinsung invests $53.5M to build energy storage system manufacturing facility in Kentucky 
The new facility will produce essential components for energy storage systems, creating 100 new jobs in the region. 

Investing in American manufacturing in 2025 

This map shows where manufacturers are choosing to invest their resources, whether they are building new production facilities or expanding existing plants. 

About the Author

Alexis Gajewski | Senior Content Strategist

Alexis Gajewski has over 15 years of experience in the maintenance, reliability, operations, and manufacturing space. She joined Plant Services in 2008 and works to bring readers the news, insight, and information they need to make the right decisions for their plants. Alexis also authors “The Lighter Side of Manufacturing,” a blog that highlights the fun and innovative advances in the industrial sector. 

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