Thursday, May 29 2014
El Lago Mexican Foods moves north, adds new, state-of-the-art, high-performance tortilla chip manufacturing equipment to enhance operations
Pflugerville, TX -- The Pflugerville Community Development Corporation (PCDC) today announced that El Lago Mexican Foods, Inc. will relocate its 60-plus year-old Austin tortilla chip manufacturing and distribution operation from downtown Austin to a 24,000-squarefoot space at 130 Commerce Center, a mixed-use development under construction at the southwest corner of SH 130 and Pecan Street.
El Lago, which has operated out of the same building since it was established, is the largest distributor of tortillas and chips in Texas, manufacturing custom tortilla chips and tortillas for restaurants and selling products in grocery stores under a variety of brand names.
Redevelopment in downtown Austin and the addition of high-rise apartment buildings and condominiums is forcing some changes for businesses such as El Lago. The company’s location on East Fourth Street is no longer the best distribution point for the logistics portion of the business.
“This location in Pflugerville is a great fit for El Lago to update and upgrade their operations to a high-performance tortilla chip manufacturing plant with new, state-of-the-art equipment at a brand new building,” PCDC Executive Director Floyd Akers said. “We are thrilled to be able to keep this longtime business in Central Texas.”
Akers said he is hearing from companies who need to get product shipped beyond the region and the state, but IH-35 and MoPac are just not the best options anymore. The suburban areas can play a crucial role in the Central Texas economy by providing landing places for those businesses.
“We are uniquely situated in Pflugerville at the corner of the new SH 130 and SH 45 with an ability to get people or product down the highway or onto an airplane quickly and easily,” he said.
The Pflugerville City Council approved a $60,000 economic development agreement proposed by the PCDC to El Lago. As part of the agreement, El Lago will bring a minimum of 40 jobs to Pflugerville. In return, the PCDC will provide a cash grant of $1,500 per full-time employee with a $30,000 average annual salary plus medical benefits.
El Lago will be the first tenant in the newly constructed, second 120-square-foot building at the Pecan 130 Business Park, which is slated to add four more light industrial/flex buildings of the same size.
El Lago is expected to move to its new location in Pflugerville by mid-August.