Flexible Foam Products Inc. has acquired a 170,000-square-foot plant in Longview, Wash., for $5.8 million to extend its reach in the Pacific Northwest and serve its current customers.
The polyurethane goods maker will refurbish the building, including the addition of a loading dock and a sprinkler system to meet fire regulations, said Alan Niswonger, vice president of marketing. Urethane foam production equipment will be added after the site has been renovated, he said.
Total investment in the plant, including the purchase price, will be between $10 million and $12 million. The factory will start with about 50 employees, but as local markets develop, that figure should increase to more than 100, Niswonger said.
Flexible Foam Products, part of the plastics division of Ohio Decorative Products Inc., hopes to have the plant operating within the next six to eight months.
The additional facility offers the Spencerville, Ohio-based firm new opportunities for economic growth, said Lewie Moeller, president and chief executive officer.
For the next few months, Flexible Foam Products will use the factory as a distribution center, transporting urethane foam and carpet cushion to the site from some of its eight other pouring and manufacturing plants in the United States, until new equipment is installed, Niswonger said. After that, the facility will manufacture and distribute PU carpet padding and foam.
``We recycle scrap from our other products and make rebond carpet cushion,'' he said, which is then sold to retailers and distributors. ``Our polyurethane flexible foam products are used in the bedding, furniture, automotive and packaging industries and sold directly to manufacturers.''
The plant primarily will make rebonded padding when it is fully operational in the fall, he said, and start producing other goods in 2005.
In addition to manufacturing, Flexible Foam designs and develops custom and specialty foam products for customers, Niswonger said.