Sheboygan-based The Vollrath Co., a manufacturer of products used in the food service industry, is planning an investment of between $40 million and $80 million to upgrade and expand its headquarters, according to BizTimes Milwaukee.
The company plans to build a new 110,000-square-foot manufacturing facility as part of a “phased development” of its corporate campus at 1236 N. 18th St., according to documents submitted to the city of Sheboygan Common Council.
The city approved entering into a $1.6 million tax incremental district development agreement with Vollrath to support the project during a Dec. 1 Common Council meeting.
“I think the (benefit) is two-fold here,” said Taylor Zeinert, director of planning and development, at the Dec. 1 meeting. “First, it’s the economic development that will come from this (project). I think another is supporting a longstanding partner.”
Tina Kreidler, vice president of finance and chief financial officer at Vollrath, said the company has been thinking about this project for “quite some time” and began discussions with the city over a year and a half ago.
“Our current facility was built in 1912, so the facility really cannot be sustained as is. We need to invest in the facility if we want to maintain a footprint here in Sheboygan,” said Kreidler. “Our hope is to keep the company where the family intended it to be, because we do have alternative options as to where we choose to invest.”
She explained the company did consider expanding its plant in Kansas instead, but opted not to.
The multi-million-dollar project will allow Vollrath to introduce more automation, increasing the efficiency of the plant.
“Today, one of our steam table pans that we make gets touched 15 times. The vision that we have is that it would be touched five (times),” said Kreidler. “That’s a huge amount of efficiency to put into the process.”
