FREMONT – The Lawrence Paper Company (LPC) announced today it will pay a special bonus to each of its 300 employees and invest in new equipment due to the Tax Cuts and Jobs Act that was recently signed into law.
The company will pay a bonus of $500 and invest over $5 million in new equipment. During staff meetings this week at its plants in Hutchinson, Kansas, Lawrence, Kansas, and Fremont, LPC President Justin Hill Jr. explained to employees the new law could have the greatest impact on them and the company.
“We think this tax bill will have a great effect,” said Hill, “for the company and for the employees.”
Hill says the most significant long-term benefit will come from the lowering of the tax rates on businesses. He believes it could free up income which can then be reinvested in businesses or even paid to employees in the form of higher wages.
He adds this new law will make it attractive to foreign companies to invest in the United States as well as encourage American companies to invest in their plants and employee wages in the country instead of sending jobs overseas.
In order to prepare LPC for the anticipated increase in business, Hill says they will expand their near-capacity plant in Fremont.
“We’re currently working with the City of Fremont to finalize plans for a 60,000 square-foot addition on our plant,” explained Hill. “Then we’ll be getting contracts to do that. Also we have some significant machinery coming to us. It will be here in about a year.”
LPC will invest more than $5 million in new machinery for the Fremont plant. Hill says if the Lawrence and Hutchinson plants near their capacity LPC will then evaluate whether to expand those plants as well.