As published in Toledo Business Journal - February 1, 2012
Johns Manville’s Milan facility
Johns Manville investing $50M+ in Milan
Johns Manville is constructing a commercial roofing single ply membrane manufacturing facility in Milan, Ohio. The production facility, an investment in excess of $50 million, will manufacture ethylene propylene diene monomer (EPDM) roofing products.
EDPM is a thermoset synthetic rubber single ply roofing membrane known for its durability, ease of installation, and weathering characteristics. Johns Manville began to renovate the facility, a former rubber manufacturing plant, in May 2011 and is expected to officially open the new facility in the second quarter of 2012.
“With the addition of EPDM, Johns Manville now has one of the broadest offerings of commercial roofing products in the industry,” stated Bob Wamboldt, vice president and general manager of Johns Manville Roofing Systems business. “EPDM is a proven product with a long history of success in the market. Our Milan facility strengthens our leadership position in the key markets we serve, complements our roofing systems membrane product offerings, and fulfills needs expressed by many of our customers.”
The project will include refurbishing the existing rubber mixing plant building and installing a new extrusion and calendering system as well as all necessary components downstream of the calender to manufacture EPDM rubber roofing sheets.
The total investment includes $31.5 million in machinery and equipment costs, $14.8 million in other investments, $12.4 million in building investment, and $100,000 in land investment.
According to Johns Manville, this project was proposed to better serve its customers with a complete portfolio of commercial industrial roofing systems including membranes, accessories, adhesives, insulations, and fasteners. Since approximately 80% of the EPDM market is located in the Midwest and northeast, Johns Manville selected the Milan location in Erie County to be close to the majority of its customers and ensure the most efficient delivery. Several locations were considered, though Milan was chosen both for its strategic location as well as the availability of a qualified and motivated workforce in the region.
“Johns Manville has a strong presence in the state of Ohio and we are excited to be part of the Milan community,” stated Tom Raba, chairman, president, and CEO of Johns Manville.
The property is approximately 9.7 acres and the facility itself is 235,000 square feet, containing both manufacturing and office space. When finished, the plant will be capable of producing around 100 million square feet of EPDM roofing membranes, including reinforced and non-reinforced wide sheets up to 50 feet.
Johns Manville has partnered with O’Neal, Inc. out of Greenville, South Carolina, and O’Neal is providing design, construction, and start-up services for the project. O’Neal has experience in the rubber manufacturing business, according to the company.
“Johns Manville is a leader in their industry, and O’Neal is pleased to help them meet their production goals by designing and constructing the facility,” stated Jeff Hall, O’Neal’s vice president.
Johns Manville has invested over $125 million in its commercial roofing business over the past five years. The Milan facility is its most recent investment. In addition to the reinforced and wide-sheet capability currently being installed in the facility, Johns Manville is working on plans to have pre-taped seam products and white EPDM products in the near future, according to the company.
The company has been awarded a 55% job creation tax credit for a 10-year term in support of the project. The value of the tax credit is estimated at $464,827 over the term, and the company would be required to maintain operations at the project site for 20 years. Johns Manville also received funding from the Ohio Department of Development (ODOD) for up to $327,000 from the rapid outreach grant program. The company’s workforce guarantee grant totals up to $30,000, bringing the value of Ohio’s commitment to the project at approximately $879,000.
Founded in 1858, Johns Manville is a manufacturer and marketer of building insulation, commercial roofing, roof insulation, and specialty products for commercial, industrial, and residential applications.
The company serves markets that include aerospace, automotive and transportation, air handling, appliance, HVAC, pipe and equipment, filtration, waterproofing, building, flooring, interiors, and wind energy.
The Milan facility marks the company’s third facility in Ohio, along with representation by two other Johns Manville businesses, insulation systems (Defiance, Ohio) and engineered products (Waterville, Ohio). The company employs approximately 6,600 people and operates 40 manufacturing facilities in North America, Europe, and China.