Hauppauge firm Source One Packaging, supplier of tamper-proof shrink wrap, plans $3 million expansion
Source One Packaging LLC in Hauppauge is planning a $3 million expansion. Credit: Rick Kopstein
A Hauppauge-based supplier of shrink wrap used to protect food, drugs, vitamins and other consumer products from being tampered with before they are sold is planning a $3 million expansion.
Source One Packaging LLC intends to purchase its first digital printing press, allowing it to bring in-house work now done by vendors in other states, said company president Richard Perillo.
The press will be housed in a temperature-controlled room, and Source One will rent an additional 16,800 square feet at 20 Commerce Dr., where it already uses 38,700 square feet, he said last month.
Supermarkets and other retailers require manufacturers “to use shrink film [on products] to prevent tampering,” Perillo told a meeting of the Suffolk County Industrial Development Agency. “They won’t even let you put your products in [the store] without it. We supply that film," he said.
The press will help Source One compete with rivals in lower-cost states by improving profitability and opening new markets, according to an application for IDA assistance.
The agency's board voted unanimously to grant preliminary approval for $324,200 in tax breaks to support the expansion project. The largest component of the incentive package is $302,400 off property taxes over 10 years, or a 27.5% savings.
In return, Source One has promised to add at least four jobs to its workforce of 44 in the next two years. The new jobs will pay $75,000 per year, on average, and be eligible for the company’s profit-sharing program.
Perillo, responding to a question from IDA treasurer Sondra Cochran, said Source One hopes “to bring in additional presses down the road, which will mean more jobs.”
A public hearing on the tax breaks is scheduled for Oct. 21 at 1 p.m. in the HIA-LI office, 225 Wireless Blvd., Hauppauge.
Source One, which was founded in 1999 in Suffolk, is 90% owned by Deborah McGarry. Perillo has a 10% stake, according to the IDA application.
Besides helping to make products tamper-proof, the company’s shrink film is used to bundle multiple items into a single consumer package.
Without the IDA tax breaks, Perillo said the expansion project wouldn’t be possible.
“I need your assistance to keep us here, to allow us to go ahead and provide for a printing press, more rent, more space and more jobs,” he said.
Kelly Murphy, the IDA’s CEO and executive director, said the agency wants to keep Source One in Suffolk, in part because the company “is a vital link in the economic chain that brings packaged food, beverages, pharmaceuticals, nutritional items and myriad other products to consumers.” She added that some of those products are made in the county.
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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