Pipemaker Uponor North America is buying a $6.4 million building in Hutchinson as part of a major expansion plan that should help it keep up with growing customer orders.
Apple Valley-based Uponor signed a purchase agreement for the 237,000-square-foot building in Hutchinson that was previously owned by TDK/HTI.
The building will be renovated into a factory that makes polyethylene (PEX) pipe, which Uponor uses in plumbing, fire sprinkler, radiant heating and cooling systems.
The building purchase will close in August. Renovations should be completed by early 2019, officials said.
The expansion is Uponor’s 11th. It announced in May that it will spend $17.4 million to expand its Apple Valley factory. Construction there is expected to be completed in January.
At the end of both new projects, Uponor will have more than 1 million square feet of plant and office space in North America.
“We are excited and committed to support our growth opportunities in North America,” said Jyri Luomakoski, CEO of Finland-based Uponor Corp. “This investment will provide Uponor with expanded manufacturing space to develop innovative, next generation solutions on a larger scale.”
Bill Gray, president of Uponor North America, said the company’s U.S. operation “is seeing unprecedented product demand as a result of continued growth in commercial and residential construction. This [Hutchinson] investment will allow Uponor to increase production capacity as we build a future on innovation, education and advocacy to better serve our customers while also growing the state’s manufacturing workforce.”
The company has more than 700 workers in the Twin Cities, including Apple Valley and a distribution center and resin processing center in Lakeville.
More jobs will be added when the plant opens in Hutchinson. Spokeswoman Ingrid Mattsson said it is too soon to know how many.