Paradise, pills and paper: tax incentives encourage manufacturing operations in Puerto Rico and the converting ventures follow

Paperboard Packaging, August, 2004 by Peter Fretty

Cardinal Production Manager Liza Diaz-Colon says the company is in the process of installing a machine with gold stamping capacity. "Our customers recognize our commitment to our facilities and technology, and this has definitely helped propel us to success within the highly competitive box industry," she says.

Cardinal further differentiates itself from other paperboard producers on the island through its business relationship with more than 50 of the pharmaceutical companies on the island and its access to a sister facility in Pennsauken, N.J.

"This facility provides a contingency plan for the customer as was validated during 1998's hurricane George," she says. "We consider our plant as an extension of our customer's operations, implementing whatever they need to improve their processes. By improving the production efficiencies, we reduce manufacturing costs to keep us competitive in the folding carton market."

In correlation with its client base and with key employee involvement, Cardinal has, during the last few years, implemented various best practices to improve its efficiencies and quality trends. To date, the firm has fully implemented a 10 steps to quality improvement process, lean manufacturing, six sigma problem solving techniques, which uses the DMAIIC process, a qualification of supplier quality system, and an equipment validation process for each major piece of equipment integrated into the production line.

MeadWestvaco

With a noticeable devotion of time, energy, effort and resources into compliance packaging, MeadWestvaco's Mebane Packaging Division, which opened in 1991 and currently employs approximately 86, is a prime example of a paperboard converter taking advantage of the island incentives. It is dedicated to reinventing itself through the integration of innovation.

Lawrence Blake, director of marketing, says the firm is growing the marketplace and doing so through its commitment to developing and capitalizing on internally derived intellectual property.

"What sets MeadWestvaco apart from the world of paperboard packaging is our innovation and our new product research and development," Blake says. "Our emphasis has been especially sharp in the area of compliance and child resistant packaging as we have introduced various child resistant (CR) packages into the marketplace over the last three years, and plan to continue doing so."

The award winning fruits of the Mebane research and development team's labors include the development and product line integration of three different CR packaging platforms including the Dosepak, which is an award winning paperboard/paperboard CR product; Surepak, which is a multi-substrate compliant package using an injection molded frame and a paperboard skin; and Shellpak, which is a fully plastic package solution.

"We are trying to take a look at what our customers needs are and give them a lot of innovative options that keep the end user safe while providing ample billboard space. The customer base here has rightfully come to expect innovation from its suppliers," he says. "Our Puerto Rico converting facility provides a launching platform for our core business of standard folding cartons, inserts and labels while at the same time encourages us to develop and introduce revolutionary new packaging concepts."