The Ohio Tax Credit Authority on July 25 approved a tax credit for Sonoco Plastics if it chooses to build a new 120,000-square-foot manufacturing facility in New Albany.

The Ohio Tax Credit Authority on July 25 approved a tax credit for Sonoco Plastics if it chooses to build a new 120,000-square-foot manufacturing facility in New Albany.

Community development director Jennifer Chrysler said the project is pending further review of incentives, which could include tax abatements from the city. She said she has been negotiating with company representatives on the potential incentives.

The state approved a 50-percent, 8-year job-creation tax credit on Sonoco's proposed $3.12 million annual payroll at the site, which would be in the personal care and beauty campus, Chrysler said. That campus, also known as business park east, is east of Babbitt Road on the north and south sides of state Route 161.

The incentive is valued at $297,198. The job-creation tax credit is refundable, which means Sonoco will pay all of its income taxes and be refunded 50 percent annually for the term of the incentive.

To receive the credit, the company must agree to maintain operations on site for 11 years, according to information from the state.

"The project in New Albany includes the construction of a new manufacturing facility and the purchase of new machinery and equipment which will result in a fixed-asset investment of at least $17 million," according to information from the state. The company will manufacture molded plastic bottles.

According to projections, the manufacturing facility would create 100 full-time jobs within three years of its opening.

"The average wage of the new full-time equivalents will be $15 per hour, plus $5.24 per hour in benefits. Sonoco has committed to hiring at least 10 percent disadvantaged and/or minority persons, as defined by the Ohio Administrative Code," according to the Ohio Tax Credit Authority.

Chrysler said Sonoco is looking at 10 acres near other manufacturers of products that give the personal care and beauty campus its name. Anomatic, which manufactures aluminum caps for bottles used in the beauty industry, would be one of those.

Chrysler said she anticipates Sonoco will apply to be part of the personal care and beauty campus' community-reinvestment area (CRA), which would allow the company to receive a 100-percent abatement on real property taxes for up to 10 years. She said the term of the abatement depends on how much environmentally friendly technology is used in the facility's construction.

Any extension of the CRA would have to be approved by New Albany City Council. The CRA program is an economic development tool administered by municipal and county governments that provides real-property-tax exemptions to businesses making investments in Ohio. To use the CRA program, a city, village or county petitions to the Ohio Department of Development for confirmation of a geographical area in which investment in housing traditionally has been discouraged. After an area is confirmed, communities may offer real-property-tax exemptions to taxpayers who invest in the area.

Ohio is competing for Sonoco with locations in Canada and Illinois, two areas where the company already is operating. Sonoco also has two locations near Columbus, according to the company's website.

Sonoco Plastics was founded in 1899 and manufactures "industrial and consumer products." It provides packaging services from 300 locations in 85 countries, according to the information from the state.