Bexar County Commissioners on Tuesday approved an economic development package worth over $2.2 million for a manufacturer planning to build its first U.S. plant in the southeast part of the county.
ECOR Global, a manufacturer with facilities in Serbia and the Netherlands, makes recyclable commercial panels using agricultural waste fiber. The company plans to invest at least $160 million in a 300,000-square-foot facility located in Elmendorf and hire 160 workers with a base hourly salary of $20.54, according to county documents.
“We came here because our first clients in the United States are European companies that have facilities in Texas,” said Steven Mueller, senior vice president for development at ECOR.
The plant will cost closer to $200 million to build, up from the $160 million estimated a few months ago.
In exchange for the commitment to bring the factory and jobs to the county, commissioners approved a 10-year, 50% property tax abatement for ECOR, an incentive package valued at $2,210,648.
ECOR produces hardboard sheets ranging in thicknesses out of agricultural waste such as corn and cotton stocks, and recycled paper and cardboard.
More than a million tons of waste fiber is available locally every year from corn and cotton stalks, gin wastes, rice straw and wheat, which is more than five times the volume needed for the plant.
“We can use all that material and pay the farmers for it,” Mueller said.
The process also does not rely on trees, chemicals or toxic glues, but instead on a combination of heat, pressure and recycled water to create a controlled chemical reaction, according to the company’s website.
The hardboard product comes in 9-feet by 12-feet sheets of various thicknesses and can be used in place of plywood, medium-density and high-density fiberboard.
ECOR executives stated that about half of everything the Elmendorf plant produces will supply several large bottling operations in Texas, including Coca-Cola, Modelo, Heineken and AB inBev. The product can also be used in flooring, furniture and shelving.
Construction on the Elmendorf plant is expected to take 18 months to complete. The company plans to break ground in 2025.
The plant will be designed so that it can be doubled in size as business grows, Mueller said. ECOR also looks to build a second plant in North Texas or Louisiana, he added.
Commissioner Tommy Calvert (Pct. 2) thanked ECOR for bringing the technology to Bexar County. “I am excited about the recycling, the [use of] stock that is going to be happening here, excited for the jobs that are created, excited for the multiplier that will happen with our farming community throughout South Texas,” he said.
County Judge Peter Sakai said that with incentives come responsibilities and expectations. But, “I see this as a win-win for our community, I see this as a win-win for our economy,” he said.
The vice president of global corporate recruitment at Greater:SATX, Ashley Gossen, said ECOR’s presence will further strengthen the region’s robust advanced manufacturing industry.
“Advanced manufacturing is a vital, high-growth economic sector in San Antonio, employing more than 54,000 people and generating an average gross regional product exceeding $8 billion,” Gossen stated. “Greater:SATX is committed to ensuring new and existing businesses have the resources to thrive and grow in our region.”