Tian Yuan, a producer of plastic resin materials, announced plans this morning to establish a new manufacturing facility in Salem, Indiana with hopes to create up to 35 new jobs by 2021.
The project is headed by Eugene and Denise Hsiao, who own Shaw Brothers Co., Inc., a recycling company in New Albany that serves China, Taiwan, Malaysia and Vietnam.
“Tian Yuan and Shaw Brothers are very pleased to be making this investment in Salem,” said Denise Hsiao, general manager for Shaw Brothers. “We look forward to growing our business and continuing to be a strong corporate citizen. We appreciate the assistance of the state of Indiana and the city of Salem for their willingness to work with us as well as providing a very warm welcome.”
The Hsiaos are joined by son, Andrew, who said he was excited at the business, which will use recyclable materials from the Midwest. “That’s why we’re here – to keep plastic out of landfills and the ocean. I absolutely want to work towards that goal.”
Denise Hsiao said the company has expanded to Thailand, Philippine, Vietnam, Malaysia and Singapore over the last year. “Our clientele is being expanded [and] we hope by then to be able to expand bigger (in the US).”
“Right now we are receiving material in,” she said. “Machines will be set up this week and next week. We have hired a technician from China to set it up. Hopefully by the end of the month we will be operational. Hopefully in 2-3 years, we’ll have 35 employees. We are planning to have three shifts. Each shift we will have a certain amount of employees. Hopefully we’ll be able to expand.”
Denise said the company will be making pellets for packaging.
“We are making pellets and buying recycled materials from the middle of the US,” she said at a press conference earlier today at Salem City Hall. “The equipment will grind [the recyclable materials] and make them into pellets. Right now we will be shipping to Thailand, Philippines, Vietnam, Malaysia and Singapore….hopefully will be able to sell to the US.”
Andrew said selling in the US would be down the road.
“We have the machinery to grind up the material, process it and pelletize it…but due to sometimes the type of material we have to work with, we can’t always reach the level of quality that is required in some of the major plastic extruders and molders in the US.”
He said the family hopes to be able to set up a lab, add additional machinery, and start reaching those qualifications to begin selling their product domestically.
“Right now we have roughly 1600 boxes in the warehouse,” Andrew said. “Each one weighing between 500-1000 pounds.”
“We’re hoping to be ready in about two weeks, said Denise. “About the end of May we’ll be doing the first productions. We started with 20,000 square feet, then added 2750 and then another 10,000 — which make it 37,500 total square feet. I think i’m going to add another 10,000. Right now it’s full of material. We don’t have the grinder yet…will be set up next week.”
City of Salem Marketing Director Greg Fitzloff said this was a welcome addition to the city.
“We very much appreciate your confidence, investment in Salem,” he told the Hsiao family. “We’re obviously delighted to have you here. We hope that your stay in Salem is as productive and fruitful as you believe it will be. We think it’s a great addition to the community. This is a tremendous partnership for the community. On behalf of the city, if there’s anything we can do to work with you or work with you, I hope you ask.”
Asked how they settled on Salem as a location, Denise replied, “It was a surprising thing. Since we started we were focusing in New Albany. In New Albany, all the warehouse space is set. For us, we didn’t know how big we needed. In Jeffersonville, they gave us opportunity, but not that flexible. We had to think about electricity….very costly to set electricity. For us to pick it up and move it, it would be more.”
Eugene Hsiao said they had worked with Walker Recycling in the past, and he suggested they open a business in Salem.
“We buy from him. He’s very friendly. Very helpful,” said Eugene. “We went to Indianapolis, different places to get materials. It costs a lot of money for shipping. Wanted to be in Indianapolis or North Carolina. Joe said, ‘you need to come here.’ The people are so nice. I’ve been in New Albany for 35 years. I’m from Taiwan. Here’s is my home town.”
“The reason we like it here is that it’s very welcoming,” said Denise. “I think the friendliness and willingness to work with us has been the major thing.”
The company, which was recently established as a joint venture with Shaw Brothers Co. Inc., will invest $2.3 million to lease and equip a 37,500-square-foot manufacturing facility at 410 S. High St. in Salem.
“Companies like Tian Yuan continue to find Indiana’s strong business climate, skilled workforce and vibrant communities as an equation for success,” said Indiana Secretary of Commerce Jim Schellinger. “We look forward to witnessing the good jobs Tian Yuan creates for Hoosiers in southern Indiana. We’ll do our part by continuing to promote Indiana as a destination for business, near and far, to attract the jobs of today and tomorrow.”
The new facility, which will begin production this month, will complement the Shaw Brothers’ production capabilities by producing plastic resin used for the extrusion process, mixing raw plastic materials.
The joint venture was formed to help meet growing demand from domestic and international customers as Shaw Brothers enters new markets.
Tian Yuan has already started to hire for sorting staff, production workers, material handlers and other operation professionals. Interested applicants may apply by email.
Shaw Brothers, an industry broker of plastic scrap and resins, established the new company, Tian Yuan, as a joint venture and to serve as a complement to its recycling division. Founded in 1985, Shaw Brothers buys and sells plastic materials through a network of domestic and international customers.
“The City of Salem is very pleased and appreciative of the jobs and investment that Tian Yuan brings to Salem,” said Salem Mayor Troy Merry. “We are looking forward to a long, positive working relationship. We are also appreciative of the efforts of the IEDC, our local economic development partners and the Salem City Council for their cooperative work to make this project possible. This project is one more tangible sign that our economic development efforts are paying off and Salem is continuing to grow.”
The IEDC offered Tian Yuan up to $140,000 in conditional tax credits and up to $20,000 in training grants based on the company’s job creation plans. These incentives are performance-based, meaning that until Hoosiers are hired, the company is not eligible to claim incentives. The city of Salem will offer additional incentives at the request of the Washington County Economic Growth Partnership.
As companies like Tian Yuan continue to establish operations in the Hoosier state, Indiana is taking the state’s workforce development to the next level with a focus on the key industries and high-demand jobs driving Indiana’s 21st century economy forward, such as advanced manufacturing. Next Level Jobs – which provides grants to employers and skill-seeking Hoosiers – is working to build Indiana’s workforce to help fill more than 1 million job openings expected to be created by 2025.
About Tian Yuan
Tian Yuan was launched as a joint venture, partnering with Shaw Brothers Inc., a provider of plastic scrap and resins. Tian Yuan will complement the Shaw Brothers’ current capabilities by producing plastic resin for the extrusion process.
