Gov. Steve Beshear and other state officials helped Berry Plastics announce Tuesday that it will invest $20 million in a capital improvement plan for its Franklin manufacturing facility.

The Evansville-based company is a leading manufacturer and marketer of plastic packaging products. It was formerly known as the Kendall Polyken and Adhesives plants and Tyco Adhesives.

The scope of Berry Plastics’ plan includes initiatives to improve the facility’s environmental footprint, to replace antiquated and energy consuming equipment with state-of-the-art manufacturing equipment, to enhance production to yield the most consistent products and to ensure job retention at the plant.

Larry Hayes, secretary of the Kentucky Cabinet for Economic Development, accompanied Beshear.

The facility will improve its environmental footprint with the introduction of closed-loop systems for the manufacturing of its products. The closed-loop system will eliminate open-handling methods for raw material introduction and disposal that are part of the typical production processes.

The new equipment will also contain the particulates that typically would distribute into the air.

By eliminating older less energy-efficient equipment, Berry Plastics also expects to reduce its overall energy consumption.

By making the equipment upgrades and production enhancements, the company will be better positioned to continue to meet the evolving and growing needs of its client base and offer industry-leading products, according to a press release from Berry Plastics.

“The plant has been a key contributor to the economy of Franklin since 1957. The continued success of the facility is reflected not only in its strong leadership and management, but it is also enhanced because of the excellent resources provided by the state to keep businesses strong,” Berry Plastics Chairman and CEO Ira G. Brooks said.

“Kentucky Gov. Steve Beshear has been instrumental in his support and made the decision easy to make a strong investment in the Franklin facility,” Brooks said.

The governor’s office estimated that Berry Plastics’ decision to invest in the local plant and the state’s ability to assist it will result in at least 460 jobs being retained in Kentucky.

“Our ability to aggressively assist existing Kentucky industries in their job retention and retooling efforts is evident by Berry Plastics’ decision to further invest in its Franklin facility,” Beshear said. “I’m pleased to be part of today’s (Tuesday’s) announcement and want to commend the workforce and community leaders of Simpson County on their continued hard work and economic development efforts.”

The Kentucky Economic Development Finance Authority gave preliminary approval to Berry Plastics’ parent company, Covalence Specialty Adhesives LLC, for $10 million in tax incentives over a 10-year period under the Kentucky Industrial Revitalization Act (KIRA).

KIRA is intended to assist in the rehabilitation of manufacturing or agribusiness operations that are in imminent danger of permanently closing or that have closed temporarily, and where at least 25 jobs are created or maintained.

“The Franklin facility will be entering a new era as a result of this capital investment by Berry Plastics,” said Thomas E. Salmon, president of Berry Plastics’ Tape and Coatings division. “Our experienced and skilled employees will be able to continue to produce quality products but now using superior equipment in Franklin. Knowing that we can make the investment in the plant because the state is making an investment, too, fortifies a strong and continuing economic opportunity for all interests.

“Our continued production of highly desirable adhesive products is something that our employees and the great people of Kentucky can both be proud of,” Salmon said.

The Franklin plant holds ISO certifications for automotive, medical, environmental and operational excellence. The facility has been operating for more than 53 years and employs around 500 workers.

The company laid off 122 employees last March, but Tuesday’s announcement of the major investment indicates that the Berry Plastics will continue to play a key role in providing jobs for the residents of southcentral Kentucky, according to F-S Industrial Authority Executive Director Dennis Griffin.

“This is an important day for the future of the Berry Plastics plant. This huge investment being made by the Berry Plastics should solidify the future of the plant in Franklin for a long, long time. We are also hopeful that it will create opportunities for employment at the Franklin plant,” Griffin said.

Added Mayor Herbert Williams, “Berry Plastics is the oldest industry in Franklin. This major investment in new equipment for the plant will ensure that this important facility will remain active in our community for years to come.”

Berry Plastics is a major producer of a wide range of products, including open top and closed top packaging, polyethylene-based plastic films, industrial tapes, medical specialties, packaging, heat-shrinkable coatings and specialty laminates.

The company’s 13,000-plus customers range from large multinational corporations to small local businesses. Berry Plastics has 66 manufacturing facilities worldwide and nearly 13,400 employees.

The Berry Plastics plant opened as the Kendall Adhesives and Polyken Plant in 1957 and has been one of Simpson County’s largest employers since. The plant on U.S. 31-W south was acquired by Tyco International in 1996 and merged into one manufacturing facility.

Employment climbed to over 1,000 at Tyco Adhesives in 2000, but the workforce gradually slipped to 650 by November 2003.

Tyco Adhesives sold the Franklin operation to a New York investment firm, and the plant was renamed Covalence Specialty Materials. It became the world’s largest maker of duct tape, manufacturing 95 million a year, and the country’s biggest producer of trash can bags. In April 2007, Covalence and Berry Plastics merged.

“It’s exciting to see Berry investing so much in the Franklin plant,” Simpson County Judge-Executive Jim Henderson said. “We’re confident that this will help keep Berry competitive and vibrant as one of our most valuable local industries.”