Package-maker Elopak’s commitment to LR site takes almost a year

Last week, Norwegian manufacturer Elopak made a significant move to draw attention to the new 300,000-square-foot production facility it is building at the Port of Little Rock — the global company’s first plant in the United States — with a groundbreaking celebration attended by company officials and local, regional and state economic development leaders.

Elopak’s interest in Central Arkansas, which it evaluated against 25 other potential sites in the U.S., began much quieter, with a discrete inquiry — labeled Project Darius — sent to the Little Rock Regional Chamber of Commerce in November 2022 by a site-location firm.

At the time, area officials were told only that a manufacturing company was interested in the region, if it could be provided an existing facility ranging between 217,000 square feet and 325,000 square feet that was connected to a rail spur. The 10-page itemized list, which officials say is typical of initial inquiries, also asked about the area’s transportation structure, workforce, taxes and utilities among others. Ballpark information on jobs and investments are often included as well.

Responses are generally expected to be returned within a week, according to Jack Thomas, the vice president of economic development at the Little Rock chamber who leads business recruitment efforts. To begin with Project Darius, the chamber sent the inquiry to regional economic development teams to identify the best match.

“We cast a pretty wide net,” Thomas says, noting that the outreach network extends from Searcy through Clark County and over to Pine Bluff — about a 60-mile radius.

It would be more than six months before the chamber team knew the name of the company and the specific products it produced: cartons for liquid dairy, juices, plant-based products and liquid eggs.

Project Darius highlights the operating-in-the-dark system, where both the business prospect and the local economic development team act in good faith and trust that the other party will keep information confidential until a deal is signed.

During the first site visit in May 2023, Elopak represen

tatives were known by first names only — no surnames and no titles to identify the participants.

That would be followed up with two more executive team visits to Little Rock. The second one in June, when the name of the company was revealed, focused on workforce; the third visit in August concentrated on utilities and included a tour of the city.

“That’s when we really roll out the red carpet for them and feature the city and the region,” Thomas said.

Every project has a bump along the way — in this case, Elopak officials found a spec site under development at the port that they favored, but after further review determined that the concrete padding in the facility would not be strong enough to support production equipment.

Switching gears, Elopak altered its plans to build a new site at 6101 Zeuber Road, using the developer of the spec facility to build the manufacturing plant, which is adjacent to Amazon’s warehouse and distribution facility.

The site, however, didn’t have the required rail spur and the state offered incentives, including $1.25 million in cash from the governor’s office, to add the connection. Elopak signed the incentives proposal in October — nearly a full year after sending in its initial inquiry to the Little Rock chamber — that finalized the deal and confirmed the company’s commitment to the port site.

Finally, by November all the planning and preparation was completed and local teams pulled together materials to introduce the company to Central Arkansas at a December news conference at the port. “That introduction is especially important with a company like Elopak, which has no brand recognition and is not known at all in the community,” Thomas said. “An announcement builds awareness and helps them recruit employees.”

Elopak is the seventh international firm to set up operations at the port. The company operates in 40 countries and provides products in 70 nations.

RECOGNIZING MINORITYOWNED FIRMS

Arkansas is making progress in identifying and certifying minority businesses to open more opportunities for owners to strengthen and grow their companies.

The Arkansas Economic Development Commission certified 50 minority-, femaleand veteran-owned businesses last year, up from the 34 approved in 2022.

The Minority & Women-Owned Business Enterprise Certification Program has now approved 335 minority enterprises.

“The [state] certification provides a wide range of benefits for businesses that will set them apart in a competitive landscape, and we hope that this will open the door for future opportunities for these companies,” said Esperanza Massana Crane, director of the commission’s Small Business & Entrepreneurship Development Division.

The commission maintains a directory of more than 2,100 minority businesses operating in the state, including those not formally certified. The directory, available at arkansasedc. com, provides details about the firms, including contact information, the services they provide and ownership.

RITTER EXPANDS IN NWA

Ritter Communications of Jonesboro is investing $5.4 million to deliver high-speed internet to homes in Rogers and Lowell.

Ritter’s RightFiber offering, introduced to Arkansas homes in 2021, provides up to 5 gigabytes of internet speed along with TV and phone options. Ritter, which also serves residents in west Tennessee, expanded into Northwest Arkansas beginning in Centerton in September and plans to extend service to other communities in the region, the company said.

“We are committed to providing our customers with the high-quality internet and world-class customer service we’re known for,” Chief Executive Officer Heath Simpson said in announcing the expansion.

The company said it will notify eligible residents in Rogers and Lowell through door tags, direct mail, yard signs and door-to-door visits.

Ritter, privately owned, serves more than 51,000 customers in Arkansas, Texas, Missouri and Tennessee.