Advanced Drainage Systems Inc. is opening a new manufacturing plant in Clifford, Mich., to meet demand for high density polyethylene piping.
The Hilliard, Ohio-based manufacturer's expansion is in addition to a $10 million project announced last summer to expand capacity and improve on delivery capabilities, according to a news release.
Chairman and CEO Joe Chlapaty said the location of the new facility was selected to meet the agricultural draining system and infrastructure upgrade needs of the “thumb” region of Michigan and southwestern Ontario.
This will be the second ADS facility in Michigan, joining a plant in Owosso. The Clifford plant is scheduled to be up and running in the second quarter of 2012.
Rapid expansion for the piping manufacturer is nothing new. In 2011 alone, ADS opened plants in Hampton, Iowa, and Buxton, N.D., bringing its total number of domestic and international manufacturing plants to 54 with 24 distribution centers.
Chlapaty attributed the company's success to multiple factors.
He said acceptance of corrugated plastic piping is more prevalent over other materials, such as concrete or steel. Also, ADS' extensive network helps minimize freight costs and the agricultural market is strong right now, he said.
A booming agricultural market and the oil and shale-gas phenomena didn't hurt, according to Chlapaty.