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Packaging manufacturer plans expansion at former Otis Elevator site

By Lucas González

Posted September 22, 2023

The inside of the former Otis Elevator facility. (WFIU/WTIU News)

An Illinois-based plastic lid and cap manufacturer plans to expand its operations at the former site of the Otis Elevator Company factory on Bloomington’s west side.

Phoenix Closures, Inc., also known as Phoenix Packaging, wants to invest more than $20 million in new production lines and equipment, bringing an estimated 21 new jobs to the area.

Based on plans discussed at county government meetings in August, new employees would make somewhere between $22 to $26 per hour. That’s not including benefits, which is valued at about $16 per hour.

Several have touted the proposed expansion as a benefit to the county. County Attorney Jeff Cockerill said Phoenix’s employee participation rate for health insurance is about 93 percent, which he called extremely high.

“That kind of tells you it’s a really good plan, or people would have gone through their spouse, or gone through whatever other options they have,” Cockerill said. “They expect $1.1 million in new wages, but that does not include all the benefits that are also associated with that.”

Phoenix said it currently has eight production lines at its Bloomington facility and hopes to add another four. It employs about 68 full-time workers at the facility.

The Monroe County Council has approved the company's request for a 10-year tax abatement, or a property tax break offered by a state or municipality on certain types of real estate or business.

Phoenix will pay no taxes the first year, 10 percent the second year, and 10 percent more each year until year 11, when it will pay the full amount in property taxes.

Bloomington Economic Development Corporation President Jennifer Pearl also spoke favorably of the proposal. She said the corporation is focused on revitalizing the old Otis Elevator site.

“That not only creates opportunities for job creation now, but it also helps add to our assets for the future that we have in this community,” Pearl said.

Phoenix moved into the former Otis Elevator factory at 1425 S. Curry Pike in 2017. It also has manufacturing facilities in Greencastle, Ind.; Naperville, Ill.; Davenport, Iowa; and Newport, Tenn.