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Mohawk Announces Plans for a New Envelope Manufacturing Plant

Cohoes, New York, USA 30 December 2014 -- Mohawk has announced plans to operate a new envelope manufacturing facility in the town of South Hadley, Massachusetts, resulting in the creation of up to 40 new jobs.

The announcement comes after the Massachusetts Office of Business Development Economic Assistance Coordinating Council voted unanimously to approve Mohawk's application for a special tax assessment for a facility located at 28 Gaylord Street in South Hadley, MA.

Mohawk intends to enter into a seven-year lease agreement on the 112,342-square-foot facility beginning 1 January 2015. Pending successful completion of the ongoing lease negotiation, construction is scheduled to begin in early January 2015, and the facility is expected to be fully functional by the end of April 2015.

"Our plan to create a new envelope converting facility in South Hadley, MA, represents our commitment to further growth of Mohawk's envelope business," said Thomas O'Connor Jr., chairman and CEO, Mohawk.

O'Connor continued, "Since January of this year, we have committed to investments of nearly $5 million in new envelope converting equipment and facility upgrades, and the creation of 100 new jobs for skilled envelope workers. Our envelope business is vibrant, rapidly growing, and we are uniquely positioned to serve our customers with fast delivery, exceptional integrity, and the highest quality envelopes available in the industry."

Mohawk will invest up to $2 million to retrofit the South Hadley facility, including upgrades to electrical systems, installation of air and vacuum lines, and the purchase and installation of envelope converting and manufacturing equipment.

Mohawk expects to produce over 500 million envelopes annually at the new facility. The site will also feature warehouse space to service the company's customers along the East Coast and Mid-Atlantic regions, as well as overseas businesses.

"The Town of South Hadley has been extremely cooperative and supportive of our interest in opening a new envelope manufacturing and distribution facility," noted O'Connor. "We're grateful for the guidance we've received from Town Administrator Michael Sullivan and Michael Vedovelli, Senior Regional Director of the Massachusetts Office of Business Development. We're looking forward to joining the South Hadley business community," O'Connor continued.

Bob Scammell, Mohawk's senior vice president, strategy and business operations, also noted, "We selected the South Hadley location because the layout of the building is ideal for our manufacturing needs, the site is essentially move-in ready and requires minimal construction prior to becoming operational, and there is an abundant pool of highly skilled envelope workers in Western Massachusetts."

Approximately 40 new employees will be hired to staff the new South Hadley facility, which will operate five days a week, three shifts per day. Positions are currently being filled, and skilled envelope workers can submit applications at www.mohawkconnects.com/company/careers.Opens in a new window

Mohawk continually sets industry-leading standards for safe operations and the company is known throughout the paper industry for its manufacturing and converting capabilities.

Mohawk also owns and operates a one million square-foot paper and envelope converting facility in Ashtabula, Ohio, which produces 1.5 billion envelopes a year.

In early 2014, Mohawk grew its envelope operations at its Ohio facility by adding 75 new employees and expanding operations by investing millions of dollars in converting equipment upgrades.

Mohawk's Ashtabula, Ohio envelope facility recently logged 10 years without a lost time injury. This significant accomplishment, achieved by nearly 200 employees, clearly demonstrates Mohawk's strong commitment to operational excellence and workplace safety.


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