The Carolinas are home to two new U.S. operations of major European flooring firms.
Unilin, a manufacturer of glueless laminate flooring known as Quick-Step, is expanding its operations in Davidson County with an $80-million investment that promises creation of 330 jobs with an average wage of $16 per hour.
"We currently have a facility in Thomasville and, looking at logistics, obviously this part of North Carolina is an ideal location because it puts us within 650 miles [1,046 km.] of 50 percent of the population," says Stefaan Ver Eecke, president and COO of Unilin Flooring, the U.S. subsidiary of the Belgian company. "We're also very close to our supply base. This area has an excellent, well-educated work force, and we've had a good relationship with community colleges, which has helped us with recruiting."
Ver Eecke says Unilin considered locating in other states, but the advantages achieved by being in Davidson County, plus the incentives offered by the state of North Carolina through the Job Development Investment Grant (JDIG), tipped the balance. For each year Unilin meets required performance targets, the state will provide a grant equal to 60 percent of the personal state withholding taxes derived from the creation of new jobs. If Unilin follows through on its job creation promises, the company could realize $2 million over 10 years. Unilin also will receive county and other state grants totaling more than $7.3 million.
Ver Eecke says the laminate flooring industry is strong and growing. Unilin sells its products in the U.S. through 17 independent distributors who sell to more than 10,000 independent retail stores, he says.
"Hard surfaces are growing and gaining more market share at the expense of products like wall-to-wall carpeting and linoleum," Ver Eecke says. "Overall, the market is seeing significant growth and our Quick-Step brand is continuing to gain market share."
Kronotex USA, the U.S. subsidiary of Switzerland's
KronoGroup, is building a manufacturing complex on a 342-acre (138-hectare) site at the South Carolina Advanced Technology Park in Barnwell. Norm Voss, president and CEO of Kronotex USA, says infrastructure, availability of raw materials, availability of qualified management and labor were the key factors in the company choosing the Barnwell site.
Voss says the company has almost completed the first phase of the project, a 360,000-sq.-ft. (33,400-sq.-m.) facility housing a short-cycle melamine laminating line. The second phase involves a medium density fiberboard (MDF) line. The two phases represent a $140-million investment, with Kronotex estimating creation of 160 jobs.Voss says sales of laminate flooring have been growing at an annual rate of 15 percent over the past three years. Kronotex supplies major home centers and large independent retailers through its distribution network.
Investment in new projects can be found even at the end of the wood-processing cycle.
Kingsford Charcoal, for example, is investing in a manufacturing plant in Glen, Miss., that will turn wood waste into char for the production of charcoal. Char produced at the Glen site will be shipped to plants in Kentucky and Missouri for the manufacture of charcoal.