Chattanooga, TN, May 21--A Chattanooga maker of foam used in bedding, furniture and carpet backing is embarking on a nearly $3 million expansion and swelling its work force by up to 30 employees, according to the Chattanooga Times/Free Press.
Nu-Foam Products Inc. is building an addition to its 1101 Wisdom St. plant, and it has bought a nearby 66,000-square-foot structure.
"This company is in a growth mode," said Tim Maharrey, who manages the plant.
Nu-Foam, a subsidiary of privately held Ohio Decorative Products Inc. of Spencerville, Ohio, is expected to have up to 90 workers at its plant soon.
Business so far this year is up as much as 30 percent compared to a year ago, Mr. Maharrey said.
"That's the reason for the expansion," he said. An addition to the rear of the existing plant will permit workers to make more of the long buns of polyurethane foam it produces and then cuts to order.
Mr. Maharrey added that the company has bought about $1 million worth of tractor-trailer equipment to supplement its private fleet.
Steve Hiatt, the Chattanooga Area Chamber of Commerce's director of existing business development, said the company hopes to add new customers to its growing base and serve them through the expansion.
"Things are looking really good for them," he said.
Mr. Hiatt said Nu-Foam has changed its manufacturing processes so that it is one of the lowest permitted emitters of volatile organic compounds.
The company recently purchased a 66,000-square-foot building about two blocks away. Short-term, the structure will be used for storage of scrap foam that it purchases and then reprocesses.
"To expand the business, we need to have the raw materials," Mr. Meharrey said.
He said the plant is producing carpet backing 24 hours a day, seven days a week.
"We're shipping 2,500 rolls a day," said the plant manager. "We can barely keep up with the market."
On the foam production side for bedding, furniture, automobiles and packaging, the company has added a second shift that works five days a week, he said.
Lewie Moeller, the company's CEO, said the business is facing "an excellent juncture."
"The expansion offers new opportunities for economic growth for our company, as well as greater Chattanooga," he said.
Tom Edd Wilson, the Chamber's chief executive, believes the Hamilton County area is building momentum in terms of job growth with several recent announcements by companies.
U.S. Xpress Enterprises is adding 1,000 jobs over the next seven years, NA Industries is buying more than 20 acres for a possible expansion, and a new business has signed on to build in Enterprise South Industrial Park. However, Invista, formerly DuPont Textiles and Interiors, announced this week it is downsizing.
