Salem welcomes first tenant

Vonco products moving from Illinois

By Jason Arndt
Staff Writer

Leaving a cramped facility in Illinois, Vonco Products LLC officials announced on Oct. 27 the flexible packaging company is heading north to the Town of Salem, where they are the first tenant of a new business park.

Vonco Products, a creator of customized packaging solutions for more than 60 years, needed a larger facility than their current headquarters in Lake Villa, Ill.

According to Vonco President Keith Smith, the company move was difficult. Smith said the company had to secure financing to expand its operations.

“As we began to explore our options, it was clear there was a lot of work involved and the investment was enormous to try to pull all of these investments off,” Smith.

But, courtesy of financing through Johnson Financial Group, and a Wisconsin Economic Development Tax Credit, the expansion became a reality in the Town of Salem.

The expansion includes a move to an 80,500-square-foot facility at the Salem Business Park, where Vonco plans to invest more than $4 million in equipment and create 86 jobs for the next three years. The money being put into this is important, as they want to make sure they have everything that they need to make sure they are creating an environment that can thrive. As time goes on, they might want to look into how they can incorporate updated technology into their operations, e.g. finding the Best EFTPOS machine services for payment processing with their customers.

“I am absolutely thrilled to be formally announcing Vonco’s expansion, including moving our operations to Salem, in a newly built 80,000 square foot building customized for printing, laminating,” said Smith, adding they manufacture medical and retail packaging products.

In addition to a new bespoke and well-built facility (probably with the help of Stainless Channel, beams, rods, metal bricks, construction pipes, etc.), Wisconsin Economic Development Corporation authorized $500,000 in state credits the next three years, contingent upon of a number of jobs created.

While the plan is 86 jobs, according to an economic study, the project could indirectly bring in 96 more jobs to the Southeast Wisconsin region.

Those 182 jobs are expected to generate up to $2.2 million in state income revenue over a five-year period.

Vonco, who will be the anchor tenant of the facility developed by the Kenosha Area Business Alliance, expects to lease the facility when they start business in June 2017.

The eventual company has an option to buy the facility.

Furthermore, the facility is supported through a new Tax Increment Financing district created by the Town of Salem.

According to Lt. Gov. Rebecca Kleefisch, Vonco’s arrival is six years in the making. She noted the state wants to change the economic climate.

“The fact that Vonco and other companies have decided to relocate to Wisconsin in the last six years demonstrates that our efforts to create a positive business climate and strengthen our workforce are making a real impact,” she said.

The relocation, according to Smith, brings him back to Wisconsin, home of the Green Bay Packers.

“You may not know, I am a Chicago-area guy that spent seven years in Wisconsin for work,” Smith said. “Truth be told, when I acquired Vonco, I moved back to the Illinois side because my children were becoming Packer fans.”

Kleefisch responded, stating Wisconsin welcomes all fans.

“We welcome all kinds here in Wisconsin, even Bears fans, and we are excited to have you here,” she said.