Hub Labels expansion means 100 new jobs

December 16, 1997

Hub Labels expansion means 100 new jobs


Staff Writer

MAUGANSVILLE - Maryland officials Tuesday approved a $200,000 loan to help fund an expansion at Hub Labels that will add 100 new jobs in Washington County.

The company, which manufactures pressure-sensitive labels, is building a 65,000-square-foot expansion on its 40,000-square-foot plant on Shawley Drive. The $7.6 million expansion is scheduled to be completed next year.

"This is expanding our capabilities, getting into some niche markets," said Anton Dahbura, corporate vice president.

Dahbura said the $200,000 will be used to help finance the construction as well as pay for new plant equipment. The money, part of the state's Sunny Day Fund, will become a grant if the company hires at least 100 new workers over the next five years, state officials said.


Dahbura said the company, which now has 150 employees, planned to expand its work force even before the state money became available.

"This is probably our fifth expansion in the last 20 years. We're an aggressive company that is expanding into new markets all the time," he said.

Begun in 1988, the Sunny Day Fund provides low-interest loans and grants to companies that have the potential to create economic development opportunities. Officials from the Department of Business and Economic Development, which administers the program, said the state targets companies that:

Have good credit.

Are within growth sectors identified by the state's strategic plan.

Plan substantial job creation and retention.

Make a capital investment of five times the amount of the Sunny Day Fund appropriation.

Obtain local government participation.

Officials said Washington County has committed $50,000 for road improvements near the plant.

"A lot of times, local governments come to us about working with them We work closely with the local economic development agencies," said Andrew Spitzler, a spokesman for the Department of Business and Economic Development.

Hub Labels was founded in 1978 with two employees, Dahbura said. Since then, it has grown into a 150-employee firm that makes mailing labels, garment labels and stickers for food products and direct mail inserts, he said.

It serves more than 800 customers, including several Fortune 500 companies.

The Hub Labels expansion was one of 10 economic development projects that the state's Legislative Policy Committee approved on Tuesday. The $12.8 million will help create 1,780 new jobs and retain another 1,391, officials said.

During the last four fiscal years, the Sunny Day Fund has increased from $7 million to $24.5 million.

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