Madisonville, Ky. — Ahlstrom-Munksjö, a Helsinki-based manufacturer of fiber-based materials, will invest $70 million in a second facility in Madisonville, where it expects to create 51 jobs.
The new facility will house a glass fiber tissue production line to make luxury vinyl tiles and vinyl sheet materials.
Company officials also plan to market the smooth, homogenous glass fiber tissue for building panels, energy storage and thermoplastic molding for the transportation industry.
The company is growing in North America and needs to expand.
Ahlstrom-Munksjö currently employs 133 people in Madisonville producing filtration materials for automotive and industrial applications.
Customer deliveries from the new operation are expected to start in mid-2023.
"The investment in this new line is an important step in our global growth strategy in the glass fiber tissue market," Willy Bordignon, vice president of filtration and performance Americas, said in a press release.
The company's experience in glass fiber tissue manufacturing helps it meet North American flooring market needs, he added.
"This new line allows us to better serve our customers in this region and provides us additional capacity in flooring but also in other applications," Bordignon said.
The company is eligible for a 10-year tax incentive worth up to $1 million if it creates and maintains 51 full-time jobs that pay an average hourly wage of $30 including benefits.
Formed in April 2017 through the merger of Ahlstrom and Munksjö, the company employs about 7,800 people across 45 plants globally. They produce décor paper, filter media, release liners, abrasive backings, nonwoven materials, electrotechnical paper, glass fiber materials, food packaging and labeling, tape and medical fiber materials.
Prior to the merger, Ahlstrom had been located in Hopkins County, Ky., since 1974.