Uponor invests $6.35 million to expand PEX pipe manufacturing

Uponor North America (Uponor) announced today that the company has signed an agreement to purchase an existing 237,000-square-foot manufacturing facility and office space in Hutchinson, Minn. The $6.35 million investment is located about 70 miles west from its North American headquarters in Apple Valley, Minn. The company, which manufactures crosslinked polyethylene (PEX) pipe and related products, is growing its U.S. manufacturing operations to support continued opportunities in commercial and residential construction. Uponor expects the closing to occur by late August 2017 and become operational by early 2019.

Previously owned by Hutchinson Technology, Inc. (HTI)/TDK, the building located at 45 West Highland Park Drive will be renovated to manufacture Uponor PEX pipe that is used in the company’s plumbing, fire sprinkler, radiant-heating and cooling systems. Modeled after its award-winning facility in Apple Valley, the company will remain committed to high environmental and sustainability standards and operational excellence.

“Uponor is seeing unprecedented product demand as a result of continued growth in commercial and residential construction,” says Bill Gray, president of Uponor North America. “This 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 Hutchinson site is an attractive location as it provides access to a large manufacturing pool of talent and remains close enough to the company’s existing operations in order to use shared services. This is the 11th expansion since Uponor began operations in Minnesota in 1990.

The purchase of the new facility comes on the heels of Uponor’s announcement in May that it will expand its Apple Valley manufacturing facility with a $17.4 million investment. That expansion is expected to be completed by January 2018. This newest acquisition will bring the company’s total footprint in North America to more than 1 million square feet.

“We are excited and committed to support our growth opportunities in North America,” says Uponor Corporation President and CEO Jyri Luomakoski. “This investment will provide Uponor with expanded manufacturing space to develop innovative, next-generation solutions on a larger scale to position us in meeting the future demands of the industry and provide greater service to our customers.”