Two Richmond factories have received 10-year abatements for manufacturing equipment valued together at about $7 million.

Georgia-Pacific Corrugated LLC, which operates two Richmond plants under the name Color Box, was approved by Richmond Common Council recently for a $4.4 million abatement, and Silgan White Cap Corporation was approved for a $2.537 million abatement.

Councilman Clay Miller, a member of Richmond Common Council's abatement committee, said this is the first time Color Box/Georgia-Pacific has requested an abatement.

The new equipment is a folder-gluer machine that folds a box into its final form and glues it so it's ready for filling right away, Miller said. This machine replaces an existing one and is able to complete more functions.

The abatement won't add any jobs, Miller said, but it will help retain the 394 full-time employees and additional temporary help at Color Box's South G Street and Industries Road facilities.

"Color Box has been a good company," Miller told council.

He added that Color Box's $18.70 hourly wage for existing employees and an its average hourly health insurance benefit of $4.25 are 2½ times the standard that the tax abatement committee uses when considering whether a company qualifies for an abatement.

Councilman Bruce Wissel, also a member of council's abatement committee, said Richmond's Silgan White Cap plant was in competition with two other company factories, one in Evansville and one in Illinois, for the new equipment that the local plant is receiving.

There are 62 Silgan White Cap plants in the United States, and the Richmond location, formerly Alcoa, was purchased by the company in 1996.

The new equipment includes two full sheet presses, a compressed air system upgrade, extruder drive upgrade, press control upgrade, UV line, compound conditioning units, RAM replacement and camera inspections.

"To get this equipment make the plant more efficient," Wissel told council. "It's a healthy sign for our community that investment is being made here."

Silgan White Cap employs 124 people at its Williamsburg Pike facility. The abatement won't add any jobs but will help retain the current full-time employees.

Wissel said the last time Silgan White Cap applied for an abatement was in 2011. At that time, the company had 99 employees and promised the abatement would help them add three more. Wissel noted that now employing 124 means Silgan White Cap has exceeded its past abatement commitment on hiring.

Miller added that Silgan White Cap's $20.9140 average hourly wage for existing employees and an its average hourly health insurance benefit of $6.246 are more than twice the standard that the tax abatement committee uses.

"I think this is a win-win for us and the company," Miller said.