Voltek announces $39M second plant in Coldwater to make more foam products
COLDWATER — Sekisui Voltek LLC will build a $39 million second plant to the west of its current plant expansion in Coldwater, the company announced.
The board of the parent company, Sekisui Chemical, approved the investment to expand operations of the Coldwater manufacturing facility.
Voltek will build the new plant on a 20-acre parcel directly adjacent to its current facility. The company said the project is in the final planning phases. It expects to break ground in early 2023 with completion the following year.
Production at the current plant will remain in full operation during the construction of the new facility. The new plant will increase production capacity by around 20%, according to company officials.
The company produces polyolefin foams, which are widely used in many building and construction applications, such as floor underlay, aluminum-laminated wall and roof insulation, sealing, ground cushioning and pipe insulation.
"The company is taking a proactive and necessary approach to increase capacity and meet the strong customer demand for its Volara foam products," the company said in its announcement.
In July, the city of Coldwater sold two small parcels of land at the south end of Allen Avenue. This allowed Voltek to tie together its properties. Voltek paid $6,000 for the land.
A half-acre parcel was a Consumers Energy substation that served at 421 Race St., formerly occupied by Bundy Tube. When CBPU took over utility services, it had no use for the land in the industrial park.
"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 50-year-old company would add 20 employees to the current 200.
The decision to expand operations in Coldwater came after help with state and local tax incentives.
Working with the Michigan Economic Development Corp., Branch County Economic Growth Alliance and the City of Coldwater, Sekisui Voltek received economic incentives to create a tax base and job growth in the Coldwater Community.
The company will seek a 12-year property tax abatement from the city of Coldwater before going forward. The abatement will be tied to investment and job creation.
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"Sekisui Voltek has been a strong economic partner, employer and contributing member to the Coldwater Community for over 50 years. We are grateful they have decided to move forward with this investment and job creation to impact the next 50 years in Coldwater," said Lisa Miller, executive director of the Branch Economic Growth Alliance.
Founded in 1969, Sekisui Voltek became leaders in the closed-cell, cross-linked foam market. The company is a significant supplier to the automotive industry.
The high-performance plastics company is part of Sekisui Chemical, a $10 billion global plastics and chemical company with over 26,000 employees and 190 companies.
— Contact Don Reid: dReid@Gannett.com. Follow him on Twitter: @DReidTDR.
This article originally appeared on Coldwater Daily Reporter: Foam manufacturer Voltek announces $39M expansion plans in Coldwater
