Sekisui Voltek LLC is spending $39 million to expand its polyolefin foam manufacturing in Michigan with a new facility next to its existing headquarters plant in the city of Coldwater.
The new plant is expected to be operating by 2024, and will increase the company's overall capacity about 20 percent, Sekisui Voltek said in a Sept. 23 news release.
"We know the last few years have been trying with supply chain issues, increases in freight costs and COVID-19," said Neil Beckhusen, president and CEO. "This expansion will bring new technology, state-of-the-art equipment and additional automation so we can continue to provide excellent customer service, adhere to our strict quality and safety measures and expand the production of our innovative foam products."
The company said the investment is to meet increased demand for its Volara brand closed-cell cross-linked polyethylene foam products.
The expansion will add about 20 jobs to the 200 at the facility now.
Sekisui Voltek is part of Japanese chemical and plastics conglomerate Sekisui Chemical Ltd., which has 26,000 employees and 190 subsidiaries worldwide.
Sekisui Voltek's statement said it received both state and local tax incentives, and worked with the Michigan Economic Development Corp., the Branch County Economic Growth Alliance and the city of Coldwater.
A statement from the city said the company would be applying for a 12-year tax abatement from Coldwater, based on meeting job creation and investment targets.
The company previously had a foam manufacturing facility in Lawrence, Mass., but said in 2016 it would close it and consolidate operations in Coldwater.