Austin Foam Plastics, Inc. to expand in Pflugerville with new development agreement


Pflugerville-based Austin Foam Plastics, Inc. will invest $4.7 million in a 60,000-square-foot expansion of their facility—a move that will ultimately add 22 jobs.

The Pflugerville Community Development Corp. approved a development agreement with Austin Foam at its Feb. 20 meeting. Austin Foam relocated to Pflugerville in 1998 and fabricates foam, corrugated, molded pulp and wood packaging solutions.

“We are excited to be able to continue our partnership with [Austin Foam], one of the largest Pflugerville employers for more than two decades,” PCDC Executive Director Amy Madison said in a Feb. 21 news release.

PCDC’s deal with Austin Foam offers a grant of $35,000 per year for the first three years, provided that Austin Foam maintains a minimum of 125 jobs in year one, creates 10 new primary jobs in the second year of the deal and creates 12 new primary jobs in the third year of the deal.

Austin Foam must retain the newly created positions each year, as well as a minimum of its current 125 employees over five years, to receive the full grant of $105,000, according to the release.

The deal will likely go before Pflugerville City Council at its Feb. 26 meeting for final approval.

Austin Foam was acquired by Sealed Air, a packaging company, in 2018. Sealed Air is set to relocate its wood shop facility from Austin to Pflugerville, according to a news release.

“The recent transition of the privately held company to a subsidiary of Sealed Air provides new opportunities for sustainability not only for the company, but also the products they manufacture, and we look forward to their continued growth in our community,” Madison said in the news release.

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  1. Why is my tax money subsidizing a company in Pflugerville that makes wood pulp products and such? There are too many low paying jobs in this city already. What we need is HIGH PAYING JOBS. PCDC is off track and it’s long past time to get rid of them! Give me my tax money back!

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Iain Oldman
Iain Oldman joined Community Impact Newspaper in 2017 after spending two years in Pittsburgh, Pa., where he covered Pittsburgh City Council. His byline has appeared in PublicSource, WESA-FM and Scranton-Times Tribune. Iain worked as the reporter for Community Impact Newspaper's flagship Round Rock/Pflugerville/Hutto edition and is now working as the reporter for Northwest Austin.
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