Asahi Kasei Plastics North America is growing by acquiring a 130,000-square-foot building in Fowlerville, Mich.
The building being acquired is only two years old and previously was owned by a trucking company. It's located next to Asahi Kasei's 290,000-square-foot compounding plant and headquarters in Fowlerville.
"The acquisition of the neighboring warehouse is a great opportunity for [Asahi Kasei] to streamline operations and better provide service to our customers," Prasad Puttagunta, operations vice president, said in a Nov. 4 email to Plastics News. "We are very excited by this opportunity."
Asahi Kasei is acquiring the building and the 25-acre lot that it sits on. Company officials said Nov. 4 that the transaction should be finalized "in the next few weeks."
No purchase price was disclosed, but officials said the firm is making an additional investment of more than $4.3 million for a system of internal roads between the two facilities and to expand rail tracks to better connect to an adjacent CSX rail line.
No new jobs are expected to result from the acquisition. Asahi Kasei employs 270 in Fowlerville.
Fowlerville is transferring a tax abatement for the property from the trucking company to Asahi Kasei. Company officials estimated that the tax abatement will save the firm between $30,000 and $50,000 per year through 2028.
Asahi Kasei also will reimburse Fowlerville around $60,000 for recent repairs done to the driveway at its existing site.
Asahi Kasei is one of North America's 30 largest compounders and concentrate makers. The firm makes compounds based on polypropylene and several engineering resins, primarily for the automotive market.
