News Release:

Vi-Chem Completes $10 Million Plant Expansion in Grand Rapids’ Inner City

Unique Building-Within-a-Building was More Than Two Years in the Making

Grand Rapids, Mich., July 9, 2001 - Vi-Chem Corp. has completed a $10 million expansion of its Grand Rapids manufacturing plant, its second major addition in a decade.

The Grand Rapids, Mich. manufacturer of colored plastic compounds said the additional 30,000 square feet of manufacturing space has allowed it to increase its production capacity by 20 percent while adding much-needed warehouse space. Vi-Chem’s facility at 55 Cottage Grove Street SW in Grand Rapids is now 130,000 square feet and employs 105 people who blend and match colored plastics for the automotive, office furniture and other industries.

Plant Manager Terry Hayward said the expansion took 30 months start to finish as Vi-Chem decided to build a new facility over its old structure to minimize manufacturing disruptions. Work crews from Wolverine Builders literally worked alongside Vi-Chem employees during the expansion as the construction crews created a new and taller facility. Once the new shell was completed, the builders removed the original roof and walls - all without major disruptions to the Company’s tight production schedules.

“Our expanded facility will allow us to improve the efficiency of our operation and the quality of the products we produce,” Hayward said. “Although expansion in this way was a challenge, we were committed to remaining within Grand Rapids and were pleased to be able to maintain our manufacturing schedules. The final result is a production facility that gives us the space, including vertical height for efficient equipment stacking, and the flexibility to meet the needs of our customers.”

Vi-Chem also added new state-of-the-art equipment during the expansion, hiring 7 new employees to handle the additional work. The Company spent 2 million on a complete revision of its computer-controlled dry-blending system, which will allow it even tighter control - and better color matching - of its plastic compounds than before.

“Even though our initial blending system was only 3-years-old, control technology has changed so rapidly that we felt installing a new system was warranted,” Hayward said. “Vi-Chem is committed to investing in the most up-to-date technology in order to provide its automotive, office furniture and other customers the best possible product.”

Last year, Vi-Chem produced more than 30 million pounds of colored plastic pellets, which were sold to other manufacturers who turned them into steering wheels for boats and trucks, body side moldings, window surrounds, arm rests and head rests for cars and trucks, home door thresholds, and office furniture panel components.

Vi-Chem Corp. is a leading producer of thermoplastic elastomers and vinyl compounds for the automotive, office furniture, building and construction, and other industries. Additional information on Vi-Chem is available at www.vichem.com or by contacting Vi-Chem’s customer service department at either custserv@vichem.com or (800.) 477.8501.

For Further Information Contact William K. Greer at Vi-Chem: wgreer@vichem.com

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