GAF Acquires 535 KSF Manufacturing Facility in Cedar City, Utah
- Feb 20, 2013
GAF, the nation’s largest producer of roofing materials, has bought a 534,598-square-foot manufacturing facility on 78 acres in Cedar City, Utah, from CC Utah Enterprises, L.L.C. The company is expected to invest about $40 million in acquisition and upgrade costs to the property at 5080 West Highway 56.
The facility will produce both polyisocyanurate (ISO), foam insulation board, and thermoplastic polyolefin (TPO), single-ply roofing membrane. It will be the third ISO plant GAF will open in less than two years. The Utah plant, which will result in at least 50 new jobs, expands the company’s North American single-ply commercial roofing system manufacturing network to three ISO operations and three TPO operations, according to a news release from the Wayne, N.J.-based company. It is also the second GAF plant to offer both ISO and TPO production and is aimed at meeting the growing demand from the western United States. GAF is searching for a site in Pennsylvania or Maryland for its fourth ISO manufacturing facility.
Work begins this quarter on the plant, located between Salt Lake City and Las Vegas, to install production lines and equipment. The plant is expected to open in 2014.
Binswanger, a Philadelphia-based, global full-service real estate firm, handled the deal for GAF. Eric Dienstbach of Binswanger’s Denver office represented the 127-year-old manufacturer. He told Commercial Property Executive GAF also looked in Northern Nevada and throughout Utah during the nearly two-year site search.
“This announcement demonstrates GAF’s continuing efforts to provide our customers with the highest-quality products produced in a manner that ensures availability when and where they are needed,” Bob Tafaro, president and CEO of GAF, said in a news release. “It also demonstrates GAF’s commitment to U.S. manufacturing and creating new, skilled manufacturing jobs in this country.”
Officials said they hope GAF’s arrival in Utah will encourage other manufacturers to locate in the state.
“Including GAF on our list of businesses operating in Utah is a significant addition to our manufacturing base,” Spencer Eccles, executive director for the Governor’s Office of Economic Development, said in the joint release. “We are making a serious effort to help manufacturing grow in our rural communities.”
The GOED’s board of directors approved nearly $900,000 as part of a tax incentive package for the company to locate in Utah, according to Gov. Gary Herbert’s office. The post-performance refundable tax credit represents approximately 25 percent of the new state tax revenue expected to be paid by GAF over the 15-year term of the agreement, a separate GOED news release stated.
Located about 250 miles south of Salt Lake City, Cedar City has a little more than 29,000 residents, according to the U.S. Census Bureau.
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