Kronotex USA Announces Expansion in Barnwell County

Investment expected to create 40 new jobs

BARNWELL COUNTY, SC – September 1, 2010 – The South Carolina Departmentof Commerce, Barnwell County and SouthernCarolina Alliance todayannounced that Kronotex USA will expand its Kronotex Flooring LLCmanufacturing facility in Barnwell County. The $45 million investment isexpected to generate 40 new jobs. The construction project, expected tostart immediately, will enhance clean energy development and increaseproduction capacity by 60 percent with the installation of a third setof high-speed laminating and profiling lines.

“The expansion of our Barnwell facility will enable us to produce acomplete line of high-end laminate flooring products with improveddesign, which were previously only produced in the company’s Europeanfactories and imported by Kronotex USA,” said Norm Voss (pictured, left), president andCEO of Kronotex USA Holdings Inc. “The increase in both capacity andcapability will create new jobs in Barnwell while providing ourcustomers with higher value products more quickly and more reliably, inaddition to reducing their delivery costs and working capitalrequirements.”

Kronotex’s expansion project includes 225,000 square feet of additionalwarehouse space and new factory, administrative and sales offices.

“This significant investment during a time of weak economic growth is atestimonial to the excellent quality of our products and our workforcein Barnwell,” continued Voss.  “We could not have continued to grow ourbusiness during these tough economic conditions if it weren’t for theclose working relationships we have developed with our customers andcritical vendors.”

“Kronotex’s decision to expand in Barnwell County is another positiveindication that the region’s skilled workforce and the state’sbusiness-friendly climate are working to help existing businesses growand compete. From Dixie Narco’s expansion to Horsehead’s recent ribboncutting, good things are happening in Barnwell County and Kronotex’sannouncement is more positive news. The community’s strong leadershipand regional support have been a key element in attracting new jobs andinvestment to Barnwell County. As well, we continue to enjoy workingwith Norm Voss and the entire Kronotex team as they grow in BarnwellCounty.  The Department of Commerce congratulates Kronotex on itsexpansion and wishes the company much success in its endeavors,” saidJoe Taylor, Secretary of Commerce.

“This is great news for us,” said Barnwell County Economic DevelopmentDirector Marty Martin. “Kronotex’s management team and ownership hascertainly done a wonderful job in maintaining a strong presence in thelaminate flooring market amid adverse economic conditions. This speakswell for the future of Kronotex and their commitment to BarnwellCounty.”

“On behalf of SouthernCarolina Alliance, we congratulate the Kronotexteam and extend our gratitude for their commitment to our region and ourpeople,” said Johnny Williamson, chairman of SouthernCarolina Alliance.“We’re proud that the company, which was the region’s largest capitalinvestment announcement in the state in 2000, has chosen South Carolinaonce again as a great place to grow their business. We would like tothank the S.C. Department of Commerce and the Barnwell EDC for theirsupport of industrial recruitment in our area.”

“Norm Voss and the entire team at the Kronotex USA facility havedemonstrated their ability to compete, succeed, and grow, even in achallenging economy.  We look forward to working with the team in thecoming year as they begin their expansion at the S.C. AdvancedTechnology Park,” said SCA President Danny Black. “We appreciate theirinvestment in our workforce and our community.”

Kronotex U.S.A. Inc.

Kronotex U.S.A. Inc., a wholly owned subsidiary of the SwissKrono Group, is one of the largest laminate flooring manufacturers inthe world. For more information on Kronotex USA, call (866) 334-9923 orvisit www.kronotexusa.com.

About S.C. Department of Commerce

The S.C. Department of Commerce works closely with economic developmentprofessionals throughout the state to recruit new jobs and investmentsand help existing businesses grow. Commerce has been recognized for itssuccess in the areas of job creation and economic impact by AreaDevelopment and Business Facilities magazines. The S.C. Department ofCommerce was one of 10 state economic development organizations toreceive Area Development’s Silver Shovel Award in 2009 and Commercereceived the 2009 Deal of the Year award from Business Facilitiesmagazine. Southern Business & Development also awarded the S.C.Department of Commerce the “Deal of the Year” for the 2010 SB&D 100.Commerce received the recognitions for Boeing’s selection of NorthCharleston for the company’s second final assembly plant to support the787 Dreamliner program. In addition to job and investment recruitment,the agency provides a range of business support services and offersgrants for community development and infrastructure improvements. Formore information, visit www.SCcommerce.com.