Armstrong World Industries started construction on a $41 million expansion at its Lancaster, Pennsylvania, manufacturing center, where it plans to in-shore production of luxury vinyl tile for commercial and residential use. About 60 new employees will be hired to support plant start-up and continuing operations.
The decision to make this $41 million investment and onshore its LVT production from China suppliers marks the company's second investment in the Lancaster operation since 2008, when it added fiberglass-backed sheet vinyl manufacturing to that plant's production portfolio.
Armstrong CEO Matt Espe said, "We thank the commonwealth and our employees for their support of this investment. Through application of our extensive manufacturing technology, we will be better able to cost-effectively serve our North American customers with high-quality, in-market production. This investment will create local jobs and allow us to continue to grow share in this exciting product category."
The LVT market is experiencing double-digit growth in North America, largely because of product performance, appearance and ease-of-installation, the company said. By on-shoring LVT manufacturing from China, Armstrong expects to realize a more competitive cost structure with shorter lead times and improved customer service. The company expects to start shipping LVT product from this plant to customers by mid 2015.
"Central Pennsylvania is a great place to live and work, and I am delighted that Armstrong is expanding here. The people of Lancaster County are dedicated and talented workers who will thrive at this facility. They will prove that Armstrong has made a smart decision. Armstrong is a good neighbor that employs nearly 2,000 people at its Lancaster operations. Bringing this vinyl tile manufacturing expansion to Lancaster is welcome news and a great match for the community," said U.S. Senator Pat Toomey.