Hamilton Plastics, the Chattanoogabased maker of food packaging bags and lamination films, celebrated its 20th anniversary and two expansions totaling as much as $12.5 million in November.

The festivities began with a groundbreaking for a $4.5 million addition to Hamilton Plastics’ Centre South Riverport plant. The expansion will add up to 25 employees to the company’s 135-person workforce, according to Hamilton Plastics President Harshad Shah, who started the business in 1986 with a small investor group.

Company officials are also considering another expansion costing $7 million to $8 million and including more equipment and a building on eight acres in the industrial park. The second project will create 30 to 40 new jobs.

The two projects will add 160,000 square feet to Hamilton Plastics, bringing the entire plant to more than 300,000 square feet. The first project, which will include a 50,000-square-foot expansion and purchase of state-of-the-art equipment, should be completed before the end of the year.

The plant building expansion is the fourth for the company since it moved from Orchard Knob Avenue to the Riverport off Amnicola Highway in 1991.

"The expansions enable the business to meet customer demand," Shah said. "Customers keep coming and want us to do value-added products that save them time and money."

Hamilton Plastics’ production grew 30 percent in 2005 over the prior year, Shah said. And company growth is ahead in 2006 compared to 2005. Shah predicted growth should range from 10 percent to 12 percent in 2006.

"If you are loyal to your suppliers, customers and employees, just the way you should be to your family, then the results will be outstanding," Shah said. "Being greedy yields short-term gains that will only bring you to an unpleasant end."

Shah’s business started with the purchase of a small testing and consulting firm. While it was risky to leave his position with an established firm, Shah’s wife, Ulka, had a degree in computer science and a good job. "That helped in moving forward with business decisions and provided much needed support," Shah said.

Two years later Shah, determined to introduce exciting new products to the marketplace, started manufacturing plastic bags.

"Creating and developing proprietary inhouse products is the strength of Hamilton Plastics," he said.

Over the years the company has seen steady and consistent growth manufacturing a wide array of plastic bags for industrial applications, food processing and medical and foam industries.

Pilgrim’s Pride, one of the largest chickenprocessing companies in the U.S., has been key to Hamilton Plastics’ growth.

"One of our products is used by the poultry industry and keeps products fresh 21 days without freezing," Shah said.

Shah, who grew up in a middle-class family in India, came to the U.S. to further his education after finishing an undergraduate degree in chemistry.

"I worked hard 18 hours a day, studied and kept my eyes open for an opportunity to start a technical business," he said.

Since 1990 Shah has also been involved in the hotel development business. Today he is associated with 10 hotels and is one of the organizers of CapitalMark Bank & Trust.

He serves on several boards and supports religious and health foundations.