Lake City-based Pepin Manufacturing has broken ground on a $2.4 million factory expansion project in Wabasha that will help it keep up with growing demand for its contract manufacturing services, company officials recently announced.
Construction of the new 18,000 square foot facility will be finished next year.
It will include10,000 square feet of new manufacturing space, a 6,000 square foot warehouse, and space for offices. The company purchased additional land next door to the site that can accommodate future growth, officials said.
As part of the total project, Pepin is investing $1.1 million in the new buildings and $1.2 million in a new high-tech SYSCO rotary press that features high-speed CO2 die cutting.
It also purchased a $127,000 piece of automated packaging equipment that will make protective foil or poly pouches for pharmaceutical or other medical products. That equipment will have the ability to instantly bar code packages in compliance with FDA guidelines.
The additions are expected to help Pepin keep up with growing demand and attract new customers who need production help.
“We are thrilled to break ground on our new sister facility and be a part of the Wabasha community,” said Pepin CEO Jeff Solberg in a statement. “For many of our customers, risk mitigation is critical. By having two manufacturing facilities, Pepin can mitigate risk for our customers due to unforeseen natural disasters. This provides huge value to our customers and their investors.”