Phoenix

Kohler Co. to Boost Casa Grande Economy with State-of-the-Art Manufacturing Plant by Mid-2024

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Published on February 05, 2024
Kohler Co. to Boost Casa Grande Economy with State-of-the-Art Manufacturing Plant by Mid-2024Source: Kohler Co.

The Kohler Co. is on track to start operations of its Sterling Vikrell bath and shower fixtures manufacturing plant in Casa Grande, Arizona, by mid-2024, having reached substantial completion by the end of 2023. This new facility, boasting an impressive 1 million square feet, is part of a $300 million investment that's expected to strengthen the local economy with over 400 new jobs. According to ABC15, the plant will also feature an added warehouse, distribution center, and office space.

The undertaking is not just a win for employment but also a display of innovative manufacturing processes. "We look forward to becoming an active member of the greater Casa Grande community and contributing to its growing economy and quality of life," Shawn Oldenhoff, president of Kohler Kitchen and Bath North America, shared in a statement reported by Business Journal. The new Arizona plant is said to embrace "smart factory elements and cutting-edge production technology," along with initiatives to reduce its environmental impact.

In a strategic move, Kohler's second Vikrell production site neighbors other industrial developments, such as Taiwanese semiconductor supplier Chang Chun Group's factory and a proposed logistics facility by NRS. The new plant sits on approximately 216 acres in the Pinal Technology Park, a location that's become attractive to industrial users and supply chain enterprises. Not only will the factory manufacture popular bathroom products, but it will also serve as a distribution hub for the business.

Expectations for the plant's economic impact are noteworthy. A study by the Greater Phoenix Economic Council predicts that over the next decade, the Kohler project will generate an estimated $1.1 billion in economic output and directly create $166.8 million in personal income in the Casa Grande area. Of the anticipated 425 jobs, a “significant number” are projected to offer an hourly wage at least 75% higher than minimum wage. As part of the development agreement, Casa Grande has taken an active role in supporting the project, including tax reimbursements and assistance with employee recruitment efforts.

Kohler, headquartered in Wisconsin, boasts a global footprint with over 50 manufacturing facilities across various sectors, including bathroom fixtures, cabinetry, and renewable energy products. As it gears up for this substantial expansion in Arizona, the company moves forward with its commitment to innovation, environmental sustainability, and community engagement.

Phoenix-Real Estate & Development