Josh Packaging plans second Hauppauge factory, seeks tax breaks
In front, the co-founders of Josh Packaging Inc. Nejat Rahmani, vice president, left, and Abe Golshirazian, president, with from top left, Elie Golshirazian, manufacturing director, Josh Rahmani, finance and compliance director, Micah Golshirazian, technology and operations director, Schlomo Golshirazian, sales director, and Aharon Golshirazian, operations director. Credit: Newsday/Alejandra Villa Loarca
A Hauppauge-based maker of plastic packaging for BJ’s Wholesale Club, Stop & Shop, Target, Walmart and other retail giants wants to open a second factory nearby as part of a $9.2 million expansion project.
Executives of Josh Packaging Inc. said they plan to increase its manufacturing and warehouse space by more than 60% to nearly 70,000 square feet by purchasing a building at 135 Ricefield Lane in Hauppauge. Renovations also would be made to the company’s existing production facility at 245 Marcus Blvd., also in Hauppauge.
Josh Packaging’s plastic bags can be found on retailers’ shelves across the country and filled with baked goods, candy, cannabis, chips, nuts, paper towels, pet food, seafood and vegetables.
"We’re getting to the point where we need additional machinery, and to add this additional machinery we need space," said Josh Rahmani, finance and compliance director.
WHAT NEWSDAY FOUND
- Josh Packaging wants to open a second factory in Hauppauge, increasing its space by more than 60% for manufacturing and warehousing.
- The Suffolk County Industrial Development Agency board has granted preliminary approval for $453,700 in tax breaks over 10 years in return for the addition of at least 10 jobs to the workforce of 68 people.
- Two generations of the Golshirazian and Rahmani families work at the company.
The company’s workforce has nearly doubled since 2017, going from 36 employees to 68, according to documents from the Suffolk County Industrial Development Agency.
The 32,340-square-foot Ricefield Lane building would "give us more space for machinery, give us more cost effectiveness" with other packaging manufacturers, Rahmani told a meeting of the IDA board last month.
The board voted unanimously to grant preliminary approval for $453,700 in tax incentives, including property tax savings of $320,000 over 10 years.
The factory floor at Josh Packaging in Hauppauge. Credit: Newsday/Alejandra Villa Loarca
In return, Josh Packaging has promised to add at least 10 jobs in the next two years. Most of the new positions will pay $40,000, on average, according to the application for IDA assistance.
Rahmani and four of his cousins work at Josh Packaging. His father, Nejat, is the company’s vice president, and Abe Golshirazian is president. Nejat Rahmani and Abe Golshirazian also are cousins. Both emigrated from Iran in the 1970s, settling first in Boston where they learned English and earned engineering degrees.
In the 1980s, the pair bought a small manufacturer of plastic bags in Brooklyn and went door-to-door to find customers.
They began producing plastic packaging after moving to Oceanside in 1993. The company has been in Hauppauge since 2008.
"We’re a family-owned business and when people work with us, they really feel that family vibe," said Shlomo Golshirazian, sales director and one of Abe’s sons. "I’m part of the second generation and it’s really cool for me to be able to work with my family."
Besides Shlomo Golshirazian and Josh Rahmani, the company’s second generation consists of Aharon Golshirazian, operations director; Elie Golshirazian, manufacturing director, and Micah Golshirazian, technology and operations director.
Guy W. Germano, Josh Packaging’s real estate attorney, said the company wouldn’t pursue the expansion plan without the IDA tax breaks and has considered moving to New Jersey, Pennsylvania and the Carolinas.
"But with your help, they can stay in Hauppauge and continue to grow here," he told the IDA board.
The agency will hold a public hearing on July 17 before considering granting final approval of the tax incentives.
This is the second time that Josh Packaging has sought IDA assistance to expand in Hauppauge.
Eight years ago, the IDA board gave preliminary approval for $696,400 in tax breaks over 10 years to support the company’s proposed second factory at 40 Rabro Drive. The deal never closed, according to agency officials, and the building is now home to candy wholesaler Long Island Candy.
Another confectionery business, Evolved Chocolate, had operated from the Ricefield Lane building that Josh Packaging now wants to buy.
On Monday, the building was vacant and a June 17 notice from the Suffolk County Sheriff's Office said: "These premises have been put in the possession of the landlord pursuant to a court order."
The Evolved Chocolate website and telephone number were down as well.
The building is being sold by Rechler Equity Partners LLC, the largest owner of industrial and commercial properties on Long Island. Rechler Equity, through a spokesman, declined to comment on Tuesday.
Kelly Murphy, the IDA’s CEO and executive director, said in an interview that the expansion project is attractive "because it’s manufacturing, and we want to help manufacturers to grow in Suffolk County. Josh Packaging also has a succession plan in place with members of the family’s second generation playing key roles in the business," Murphy said.
James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.
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