Kronotex USA Announces Expansion in Barnwell County

COLUMBIA, S.C. – September 1, 2010 – The South Carolina Department of Commerce, Barnwell County and SouthernCarolina Alliance today announced that Kronotex USA will expand its Kronotex Flooring LLC manufacturing facility in Barnwell County. The $45 million investment is expected to generate 40 new jobs. The construction project, expected to start immediately, will enhance clean energy development and increase production capacity by 60 percent with the installation of a third set of high-speed laminating and profiling lines.

“The expansion of our Barnwell facility will enable us to produce a complete line of high-end laminate flooring products with improved design, which were previously only produced in the company’s European factories and imported by Kronotex USA,” said Norm Voss, president and CEO of Kronotex USA Holdings Inc. “The increase in both capacity and capability will create new jobs in Barnwell while providing our customers with higher value products more quickly and more reliably, in addition to reducing their delivery costs and working capital requirements.”

Kronotex’s expansion project includes 225,000 square feet of additional warehouse space and new factory, administrative and sales offices.

“This significant investment during a time of weak economic growth is a testimonial to the excellent quality of our products and our workforce in Barnwell,” continued Voss.  “We could not have continued to grow our business during these tough economic conditions if it weren’t for the close working relationships we have developed with our customers and critical vendors.”

“Kronotex’s decision to expand in Barnwell County is another positive indication that the region’s skilled workforce and the state’s business-friendly climate are working to help existing businesses grow and compete. From Dixie Narco’s expansion to Horsehead’s recent ribbon cutting, good things are happening in Barnwell County and Kronotex’s announcement is more positive news. The community’s strong leadership and regional support have been a key element in attracting new jobs and investment to Barnwell County. As well, we continue to enjoy working with Norm Voss and the entire Kronotex team as they grow in Barnwell County.  The Department of Commerce congratulates Kronotex on its expansion and wishes the company much success in its endeavors,” said Joe Taylor, Secretary of Commerce.

“This is great news for us,” said Barnwell County Economic Development Director Marty Martin. “Kronotex’s management team and ownership has certainly done a wonderful job in maintaining a strong presence in the laminate flooring market amid adverse economic conditions. This speaks well for the future of Kronotex and their commitment to Barnwell County.”

“On behalf of SouthernCarolina Alliance, we congratulate the Kronotex team and extend our gratitude for their commitment to our region and our people,” said Johnny Williamson, chairman of SouthernCarolina Alliance. “We’re proud that the company, which was the region’s largest capital investment announcement in the state in 2000, has chosen South Carolina once again as a great place to grow their business. We would like to thank the S.C. Department of Commerce and the Barnwell EDC for their support of industrial recruitment in our area.”

“Norm Voss and the entire team at the Kronotex USA facility have demonstrated their ability to compete, succeed, and grow, even in a challenging economy.  We look forward to working with the team in the coming year as they begin their expansion at the S.C. Advanced Technology Park,” said SCA President Danny Black. “We appreciate their investment in our workforce and our community.”

Kronotex U.S.A. Inc., a wholly owned subsidiary of the Swiss Krono Group, is one of the largest laminate flooring manufacturers in the world. For more information on Kronotex USA, call (866) 334-9923 or visit www.kronotexusa.com.

-###-