Capital Corrugated & Carton Inc. has embarked on a $9.1 million expansion of its plant in South Sacramento.

A city building permit issued earlier this month will allow the packaging company to build a new 108,205-square-foot building next to its existing 120,000-square-foot operation. Part of the expansion will include making room for a high-speed six-color offset press. Buying and installing the German-made Manroland AG 40-by-56-inch high-speed press alone will cost nearly $4 million, according to a staff report from the California Infrastructure & Economic Development Bank, or I-Bank. The I-Bank in November approved issuing up to $3.8 million in tax-exempt bonding to finance the acquisition and installation of the new press.

Capital Corrugated was founded in 1995. It started out in a 43,000-square-foot space, and then in 1999 moved into its current location. In 2010 it started renting an off-site storage building of 57,000-square-feet. Over the years it added more business lines and bought client lists from other packaging companies.

Company executives didn't return calls for comment. On its website, the company shows colorful wine cases, beer carriers and in-store displays with high-resolution graphics. Capital Corrugated also makes food containers and custom packaging for consumer items. The company's customers include Jelly Belly, Delicato Family Vineyards and coffee company Rogers Family Co., according to its application with the I-Bank.

The company’s plant is at 8333 24th Ave. in the Power Inn neighborhood. According to the company’s application with the city, it doesn’t plan to add any new employees to its 85-person workforce.

A contractor working on the project previously told the Business Journal that he thinks the expansion could be finished within months after the permit was approved.

 

Source : bizjournals.com

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