Nice-Pak abandons plans for new facility in Mooresville

MOORESVILLE — Nearly two years after announcing plans to build a new facility on the south side of Mooresville, Nice-Pak is abandoning the $165 million expansion project, company officials confirmed Tuesday.

In December 2019, the manufacturer of sanitizing wipes announced plans to build a 760,000-square-foot facility on a 55-acre tract of land — near the corner of Merriman Road and Ind. 67 — that was part of a 100-acre site property by the Mooresville Redevelopment Commission (RDC) in 2018. The plant would have been more than four times the size of its current 160,000-square-foot facility on Indianapolis Road.

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At the end of 2020, the company doubled down on its expansion plans, saying it would increase its investment to $165 million and add 17 acres of land to the project, bringing its total footprint to more than 78 acres. It also laid out plans to construct a 987,000-square-foot manufacturing plant, along with a 309,000-square-foot distribution center at the Merriman Road location.

Less than a year later, the company has decided to abandon the project, according to John Dietrich, Senior Vice President of Global Integrated Operations for Nice-Pak.

"With the unpredictable demand that has resulted from post-pandemic shifts, we wanted to ensure longevity of our business through investments aligned with market growth and want to take time to reconsider our previous growth plans through a strategic assessment," Dietrich said in a statement. "Therefore, we decided to release the parcel of land under agreement back to the town."

The company's commitment to Mooresville remains strong, he added, and the town will remain a key component of Nice-Pak's overall manufacturing footprint for the foreseeable future.

Nice-Pak employs more than 2,000 workers worldwide, Dietrich said. Besides its Mooresville plant, which has around 500 employees, Nice-Pak has manufacturing facilities in New York, Arkansas, the United Kingdom and Germany, along with distribution centers in New York and Indiana and a research and development center in New Jersey.

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With the project now abandoned, town officials are looking at next steps.

At its Nov. 2 meeting, the Mooresville Town Council voted to end its economic development agreement with Nice-Pak. The manufacturer agreed to return $244,493 in various fees associated with the project no later than April 30, 2022, and to relinquish the 78-acre tract, according to Dustin Stanley, town councilman and RDC chair.

What happened?

While many businesses struggled to stay afloat during the early stages of the COVID-19 pandemic, Nice-Pak saw success due to the high demand for sanitizing wipes. But as the months wore on, the market became more competitive as more "pop-up" companies entered the fray, Stanley said.

"We're not happy that Nice-Pak chose not to move forward, but we're fully understanding," he said. "Markets change, business plans change, things happen. Would we have loved to see Nice-Pak there? Absolutely."

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But it's not a complete loss, he says. The town and RDC are now exploring other potential suitors for the 100-acre site, which is home to a recently completed 75,000-square-foot shell building.

Private investors continue to remain interested in the shell building and the surrounding land on the site, Stanley said.

Contact reporter Peter Blanchard at 765-346-2942 or pblanchard@reporter-times.com. Follow him on Twitter @peterlblanchard.

This article originally appeared on The Reporter Times: Sanitizing manufacturer abandons plans for new Mooresville plant