Coll Materials Exchange, an Ohio-based company, will open a plant in Waco to recycle plastic and turn it into pellets for sale to plastic manufacturers, local and state sources confirmed Tuesday.

The plant will create more than 100 full-time jobs at first. It also will make $5.9 million in capital improvements at 501 Old Hewitt Road, where it will install equipment and do business.

Texas Gov. Rick Perry said the state will invest $550,000 in the project from the Texas Enterprise Fund — but the grant is contingent upon the city of Waco and McLennan County providing incentives.

Waco City Council members Tuesday approved giving Coll up to $444,000 from the Waco-McLennan County Economic Development Corp. incentive fund.

County commissioners also must approve the allocation for it to become effective. The city and county will split the cost at $222,000 each.

Plastic manufacturers use the pellets produced by Coll for various uses, including thermoformers, injection molders and structural foam molders.

The state’s grant will allow Coll to expand its operations to the Southwest. Between plants in Waco and Ohio, the firm will have the capacity to produce more than 100 million pounds of plastic per year.

No one with Coll Materials could be reached for comment Tuesday afternoon.

But company president Brian Coll wrote, “Coll Materials is excited about doing business in Texas, specifically in the great city of Waco. The state of Texas and Texas Enterprise Fund, as well as the economic development representatives and officials in the city of Waco and McLennan County, have been tremendously helpful in providing competitive incentives, assisting with the details of doing business, and responding promptly to our questions.”

Sarah Roberts, who reportedly led the recruitment of Coll Materials for the Greater Waco Chamber of Commerce, was attending meetings outside Waco and could not be reached for comment.

“We are excited about the opportunity and vote of confidence signaled by state support from the TEF, but will defer comments until the project is finalized,” said Jim Vaughan, chamber president.

Lucy Nashed, a member of Perry’s press office, said the state wanted to help accommodate Coll Materials’ move into the Southwest.

She said she does not know how much the company will pay employees, “but to qualify for TEF assistance, it has to pay above the county average.”

The state Legislature created the TEF in 2003 and has continued to reappropriate funding to create job growth. TEF projects must be approved by the governor, lieutenant governor and speaker of the House.

mcopeland@wacotrib.com

757-5736

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