New canning facility joins foreign trade zone

New canning facility joins foreign trade zone

Two months after announcing a new plant will be built in Glendale, RRB Beverage Operating Inc. is now part of the Greater Maricopa Foreign Trade Zone (GMFTZ).

Red Bull, Ball Corporation and Rauch Fruit Juices will partner on construction of the plant, which will be at the southeast corner of Reems Road and Peoria Avenue. The three companies will fill cans in the 700,000-square-foot building.

The GMFTZ is an area that, for the United States Customs and Border Protections (U.S. Customs) purposes, is considered to be in international commerce. Any foreign or domestic material can be moved into an FTZ without being subject to U.S. Customs duties. Each zone is operated as a public venture sponsored by a municipality or other authority.

RRB’s zone, No. 277, facilitates numerous cities including Surprise, Buckeye, Goodyear, Avondale, Litchfield Park, El Mirage, Sun City, Wickenburg, Gila Bend, Youngtown, Peoria and Glendale.

Local communities benefit from the increased economic development and business development and retention that result from GMFTZ projects.

They provide attractive business opportunities and encourage foreign and domestic companies to expand and retain operations in the United States that may otherwise be relocated overseas and help add more jobs to the region.

“We are so excited to be a part of what Rauch, Red Bull and Ball are planning here in the West Valley,” said Diane McCarthy, president of the GMFTZ board of directors.

Among the reason companies join the GMFTZ are improved cash flows for businesses, reduced paperwork and expenses, reduced personal and property taxes in Arizona by 72%, added security and reduced supply chain U.S. Customs clearance speeds.

Ball currently has a site near Van Buren Street and 51st Avenue, but City Manager Kevin Phelps told The Glendale Star in March that the city’s economic development department had major work to do to help secure a deal for another facility. That site is not part of the GMFTZ.

“(Economic development) and staff put together an incentive package and timeline. One of their biggest decision makers to selecting a site was getting shovels in the ground so (the facility) could be open in the first quarter of 2021,” Phelps said.

“They had to be convinced that whatever city they selected could deliver on their timeline of opening in 2021.”

The long-term partners — Rauch, Red Bull and Ball Corp. — are in ongoing discussion regarding the joint operation of the new plant. This may be the first ever USA operation of these partners, which will result in “import displacement” of tens of thousands of import containers each year.

The facility is planned to become fully operational in the first quarter of 2021 and will employ over 120 full-time, higher-wage jobs when fully opened.

The forecasted total investment is expected to exceed $250 million over the full five years of construction as it ramps up to full production.

“Their needs included a secure water source, reliance on the FTZ for tariff balancing in this time of turmoil and the Woolf Logistics Center,” McCarthy said.

“Becoming a magnet site within FTZ No. 277 proved just the perfect combination. We welcome RRB Beverage to our West Valley zone.”

Red Bull announced the new plant will add to its growing North American demand and will continue its 32-year long collaboration with its partners.

RRB Beverage selected IMS Worldwide Inc. to assist in securing the FTZ status, as well as to get the site activated with U.S. Customs and secure the manufacturing and activity permits.