Malnove Packaging Solutions President Dale Houck said July 10 the proposed expansion of the North Jacksonville manufacturing plant is for warehousing only, reflecting strength in the business.
“We are enthusiastic about the growth of the company and the industry,” he said.
Houck said the industry is benefiting from people moving from using plastic to paper.
He said a lot of large companies have committed to deadlines to reduce plastic use.
For example, news.kraftheinzcompany.com reported in July 2023 that Kraft Heinz announced a new goal to reduce the use of virgin plastic in its global packaging portfolio by 20% by 2030.
It estimates it will reduce the use of about 100 million pounds of virgin plastic, which is new materials often used to manufacture plastic products such as films and packages.
The consumer food and beverage company said the goal builds on the investments it made across its portfolio to reduce plastic use and meet its broader packaging goals, including aiming to make 100% recyclable, reusable or compostable packaging by 2025.
Malnove offers custom folding carton solutions that include printing, custom cutting, finishing and packaging.
Malnove.com says that Malnove Packaging Solutions in Jacksonville provides package development, manufacturing and shipping expertise on the U.S. East Coast.
Founded in 1948, Malnove located its headquarters in Omaha, Nebraska, in 1976. The original Jacksonville plant opened in 1981 in Southside, moving to Imeson in 1998. A Utah plant opened in 1985.
Malnove installed robotic palletizing in all facilities in 2020.
Jacksonville plans
Malnove intends to expand its Jacksonville packaging warehouse by almost doubling its size to 362,906 square feet in Imeson International Industrial Park.
Civil engineer AVA Engineers Inc. of Jacksonville submitted civil engineering plans to the city in June to add 171,925 square feet to a 190,981-square-foot building on the 14.5-acre property at 10500 Canada Drive.
Plans say it is for warehouse space and that no employees or additional trucks are proposed.
Houck said the warehouse would store Malnove’s finished goods and the stock it uses to make cartons.
Malnove also has applied for an administrative deviation from the city zoning code to reduce the minimum number of off-street parking spaces from 182 to 140.
City utility JEA issued a service availability determination letter for the Malnove project June 28. Malnove Inc. of Florida is the owner.
Houck said the company will vacate warehouse space nearby when the lease expires at year-end 2025 and consolidate the activity at the main Malnove operation at northeast Canada Drive and Malnove Road.
“We want to have this one by the end of next year,” he said.
Duval County property records show that Malnove acquired the Imeson property in 1995 and built an almost 240,000-square-foot industrial building in 1998.
Expanding facility
Houck said Malnove added a bailer building recently.
Malnove.com posted April 8, 2024, that the company would expand in Jacksonville with the new bailer building to elevate its in-house bailing capabilities, assist in increased capacity and allow the company to separate and bail “an impressive 99% of our own paperboard scrap.”
“This venture is set to redefine our operations, marking a significant stride towards a more sustainable and efficient approach to recycling,” the post said.
Paperboard bailing is the process of compressing paper or cardboard into a dense bale and securing it with wire or plastic strapping.
The Malnove post said the new bailer building would have advanced systems that would allow Malnove to continue to separate different grades of paperboard on a larger scale.
“This strategic feature ensures that each type of paperboard can be recycled in its purest form, maximizing the value and minimizing economic impacts,” it said.
The new bailer building also serves as a fail-safe mechanism, the post said.
“Equipped to keep operations running smoothly even during downtime in our current bailer system, it underscores our dedication to reliability and consistency in our recycling processes.”
The building also provides additional storage space that “supports our commitment to innovation and growth, offering the flexibility needed to adapt to evolving market demands.”
Malnove said its investment in the new building expansion “reflects our unwavering dedication to sustainability, efficiency, and staying at the forefront of industry advancements.”
So far this decade
Malnove has been expanding the plant since 2021.
JAX Chamber announced in February 2021 that Malnove was expanding and upgrading its folding-carton manufacturing plant.
The Jacksonville City Council approved a $160,000 property tax incentive Dec. 8, 2020, for Malnove Holding Co. Inc.
“This expansion in Jacksonville is an important next step as we expand in the Southeast and is critical to the overall growth of our company,” Houck said in that news release.
Council voted to offer the company a five-year, 50% Recapture Enhanced Value Grant in exchange for creating 10 full-time jobs and investing $7.4 million investment in machinery, equipment, furniture and fixtures.
The legislative fact sheet said the plant would add a manufacturing line and buy additional machinery and equipment at a private capital investment estimated at $7.4 million.
JAX Chamber said the expansion will create the new jobs and retain 182 jobs at the company’s Imeson International Industrial Park facility.
According to a memo from the city Office of Economic Development with the incentives legislation, Malnove also leased 100,500 square feet of additional warehouse space.
The performance schedule in the economic development agreement showed Malnove completing the equipment purchase and installation by Dec. 31, 2022.
The city said July 3 that the expansion is complete and that $23,002.66 has been paid for the REV grant as of July 1. It said Malnove is in compliance with the economic development agreement.