Canadian rigid plastics manufacturer E. Hofmann Packaging is set to establish its first U.S. production facility in Madisonville, Kentucky, with a $43 million investment expected to create 164 full-time jobs. Construction on the 100,000-square-foot facility will begin later this year, with completion targeted for 2026.
The new site marks a pivotal expansion for the Ontario-based company, aimed at addressing growing U.S. demand and strengthening its footprint in the North American packaging market.
“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,” said Paul Kalia, President and CEO of E. Hofmann Plastics. “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.”
The investment has been welcomed by Kentucky officials as a signal of the state’s increasing role in advanced manufacturing.
“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,” Governor Andy Beshear said. “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.”
Founded in 1984, E. Hofmann Plastics has grown to become a significant supplier of rigid plastic packaging, with more than 40 years of experience and a strong presence in the food and beverage sector. Since diversifying its operations in the late 2000s to include extrusion and thermoforming, the company has doubled its sales every five years. Today, food and beverage customers account for over half of its business.
The Madisonville project will benefit from a preliminary 15-year incentive package approved by the Kentucky Economic Development Finance Authority (KEDFA) under the Kentucky Business Investment (KBI) program. The performance-based agreement allows for up to $2.3 million in tax incentives, contingent on the company meeting targets related to job creation and average wage levels. E. Hofmann will pay an average hourly wage of $28, including benefits, across the 164 full-time positions.
In addition, the company has been approved for up to $300,000 in tax savings through the Kentucky Enterprise Initiative Act (KEIA), which enables eligible businesses to recover sales and use taxes on construction materials, equipment, and fixtures used in research and development.
Beyond financial incentives, E. Hofmann Packaging will also have access to no-cost recruitment and placement services, as well as reduced-cost customized training through Kentucky’s workforce development programs.
Strengthening Global Reach
The Kentucky investment builds on E. Hofmann’s recent international expansion. In October 2024, the company acquired a controlling stake in PAP Packaging a.s., a Czech firm with nearly 100 years of experience producing food packaging from plastic, paper, pulp, and composite materials. The acquisition, completed through a holding company during PAP’s parent company liquidation, strengthens E. Hofmann’s reach in Central Europe and complements its existing interest in Switzerland’s säntis packaging ag.
“Today marks a very important day in our history,” Kalia said at the time of the PAP acquisition. “We see a lot of synergies with EHP and PAP and are looking forward to working with its existing management team and employees to grow its business and market share in Czechia and in Central Europe.”
E. Hofmann’s Canadian headquarters spans 175,000 square feet and supports a comprehensive portfolio of packaging solutions. Its thermoforming operation produces 21 million parts per week and includes both custom and stock designs. The company’s co-extruded sheet lines deliver seven-layer polypropylene structures with integrated oxygen barriers, while its injection molding division runs 25 machines producing over 80,000 parts daily—ranging from custom-colored pails to lids and handles.
The new Madisonville facility is expected to mirror this technical capability, positioning E. Hofmann Packaging USA LLC as a key manufacturing hub to support both regional and national demand across the food and industrial packaging segments.
