
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, April 26, 1995                   TAG: 9504260115
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: SHANNON D. HARRINGTON STAFF WRITER
DATELINE:                                 LENGTH: Short

ARKAY PROJECT BEGINS

Arkay Packaging Corp., a manufacturer of boxes for the cosmetics industry, will break ground today for a $17 million plant in Botetourt County. The construction is starting six months earlier than planned, and the company has decided to build the factory twice as large as previously announced.

Arkay said in January that construction in EastPark Commerce Center would not begin until the fall.

The Hauppauge, N.Y.-based company also has increased its original plans for a 30,000-square-foot plant to 60,000 square feet, said Beth Doughty, executive director of the Roanoke Valley Economic Development Partnership.

Arkay makes and prints packaging for the cosmetic industry, including the Elizabeth Arden Co. factory in Roanoke, Avon and Estee Lauder.

Ground-breaking ceremonies are set for 3 p.m. at EastPark, located off Alternate U.S. 220 just north of Roanoke County.

For a company to accelerate construction plans is a good but rare sign, Doughty said.

"It is more common for companies to slow the construction of plants," she said.

In January, Arkay co-owner Mitchell Kaneff said the company planned an initial 30,000-square-foot plant that would cost an estimated $7 million. Kaneff said then that plans were for expansion in about two years, worth another $10 million, to add 140,000 square feet.

He said in January that the new plant would create about 40 jobs with workers earning between $7 to $15 an hour. With a 140,000-square feet expansion, he said the plant's labor force could increase to about 175. Kaneff was not available for comment Tuesday.

by CNB