🔒Global packaging innovator Ranpak picks Shelton for innovation hub

As people’s reliance on shopping online grows, so too does the need for more packaging.

Boxes of every shape and size arrive on Connecticut doorsteps everyday. Soon, what’s in those boxes, keeping those goods safe during transit, may be dreamed up in Shelton.

Ranpak, a 50-year-old packaging company based in Ohio, recently announced plans to build an 80,000-square-foot building in Shelton to house its innovation and automation center.

But what exactly is there left to innovate when it comes to packaging? A lot, according to Bill Drew, Ranpak’s senior vice president and CFO.

Ranpak’s business model has historically been to provide its customers with a machine that produces paper packaging material, while charging for the paper product the machine uses.

“We make the money on the consumable,” Drew explained.

But Ranpak has begun to expand its product offerings.

“We are now getting much more into automation,” he said.

To that end, Ranpak has acquired a minority stake in a company called Pickle Robot, a Cambridge-based startup that was founded by MIT grads. The company is designing robots with artificial intelligence that are capable of not only unloading a trailer, but also sorting packages.

“People are having such a hard time hiring right now, these types of solutions are really in demand,” Drew said.

Ranpak also has a minority interest in a German company called Creapaper GmbH that is turning grass into paper. Traditionally, paper is made from wood pulp, but Creapaper is using grass to make pellets that can be mixed with wood pulp to produce products like paper towels and toilet tissue with a smaller carbon footprint.

Next generation packaging

The new Shelton facility, which is currently being built and should be completed in 2022, will house some office space as well as 50,000 square feet for manufacturing assembly. There will also be an area for a research and development lab that includes artificial intelligence and machine learning applications for the packaging space.

The plan is to have customers visit the Shelton facility to see what cutting-edge technologies Ranpak has to offer. To develop those technologies, Ranpak will be hiring.

“That’s one of the reasons why we chose Connecticut, because these are very sophisticated solutions that require high-end engineering and R&D,” Drew said. “We need access to a high-quality and highly-skilled workforce.”

Drew said Ranpak had considered locating its new lab in Virginia where it already has a team, but in the end Connecticut was the better location.

One of the groups involved in selling Connecticut as a prime location for Ranpak was AdvanceCT, which operates alongside the Department of Economic and Community Development (DECD) to align various stakeholders including developers, municipal leaders and the state to help facilitate business growth.

“We went into overdrive to figure out what they were looking for, what was important to them, and to basically help them explore various options,” said Peter Denious, president and CEO of AdvanceCT.

AdvanceCT is the newly rebranded and retooled successor to CERC. The name change took effect in 2019, right before the COVID-19 pandemic began. Denious said the flow of new businesses into the state pretty much came to a halt with the shutdown in March 2020, but since the fall of last year, AdvanceCT had quarter-over-quarter growth of inbound inquiries from businesses like Ranpak looking to locate or expand in the Nutmeg State.

Denious noted that Ranpak’s mission of making packaging greener fits nicely with Connecticut’s focus “on reducing waste and being environmentally conscious.”

“We’re very excited about what they’re doing,” Denious said.

Denious also noted that Ranpak has applied to DECD for incentives and “those discussions are underway.”

Local impact

For its part, the city of Shelton is pleased to see Ranpak find a home in Fairfield County.

“It fits in perfect” with the city’s economic development strategy, according to Shelton Mayor Mark A. Lauretti. Other businesses that are located near Ranpak’s new building include global companies like Pitney Bowes and Hubbell, as well as smaller manufacturers like Mercantile Development.

R.D. Scinto of Shelton is the owner of the land — at 57 Waterview Dr. — and is the builder on the Ranpak project.

Robert Scinto, CEO and chairman of R.D. Scinto, said his company has owned the parcel for 25 years. He had hoped to develop it into 250,000 square feet of office space.

“The land is the highest point in Fairfield County,” Scinto said. “But the office market is not expanding right now and warehouse space is at a premium.”

The Ranpak building broke ground in October and will be completed in about 12 months.

Drew said the team in Shelton will be close to 35 employees when it opens, with the goal of reaching between 80 and 100 workers. However, he acknowledged the challenges in hiring right now.

“It’s a hot market and the competition for talent is challenging,” he said, adding that Ranpak’s commitment to innovation should be a draw for new hires.

“People are excited about what we’re doing,” he said.

Ranpak had been owned by a private equity firm for almost 20 years. It went public in June 2019, when it was acquired by a special purpose acquisition company (SPAC) named One Madison Corp.

Since then, Drew said the company’s headcount has grown from 550 people to 850. Ranpak operates throughout the United States and in 50 countries around the globe.

For the quarter ending Sept. 30, the company reported net revenue of $97.1 million and a net loss of $1.4 million.