US: Knauf Insulation has been granted a building permit to construct an US$8.7m warehouse and logistics facility in Shelbyville in the US state of Indiana. At a tax abatement hearing, local attorney Lee McNeely, who represented Knauf, told the Shelbyville Common Council that the building is part of an expansion that will bring back a major line producing light fibreglass to the insulation producing plant, known as the 602 line.
"The warehouse will replace an old manufacturing building," said Joey Viselli, vice president of marketing for Knauf. "It just gives us a lot more flexibility to have a warehouse on site," he said.
The building was the subject of a tax abatement request in November 2011, which was granted by the council. According to the tax abatement documentation, Knauf plans to tear down an existing building and then build the new 285,000ft2, pre-fabricated metal warehouse and office space. Knauf's main US office is located in the same town.
The abatement documentation further added that, "Knauf intends to demolish an existing structure and build a new warehousing and office facility in order to support additional production for a growing customer base."
Knauf reported the total cost of the project to be US$10.9m. The City of Shelbyville permit is for US$8.7m in construction. The project is expected to add about eight jobs, creating an additional payroll of US$319,000.
In June 2011 Knauf closed its plant in Lanett, Alabama with the loss of 146 jobs. At the time, a company spokesman had said that Knauf was affected by an ongoing slump in housing construction. Viselli said that the closure of the Alabama plant is one element that changes the demands placed on the Shelbyville location.
