Direct selling leader Amway today marked the official start of construction at an $81 million manufacturing and warehouse facility near the company’s world headquarters in Ada, Michigan, U.S. The 317,000-square-foot facility at 5101 Spaulding Avenue will house select manufacturing operations for NUTRILITE™ vitamins, minerals and dietary supplements, sold exclusively by Amway distributors.
“This new manufacturing facility is a reflection of the hard work of our distributors and employees,” said Steve Van Andel, chairman of Amway. “Thanks to their efforts, we’ve reported record sales for our products year after year. That increased demand is the driver for our $375 million global manufacturing expansion at seven sites around the globe. Four of the sites are located in the U.S., with two sites in our world headquarters community of Ada, Michigan.”
Amway will add 200 advanced manufacturing jobs at the Spaulding Avenue site during the next three years, including 50 jobs when the plant opens its first phase in 2014. The facility is scheduled to begin operations in 2015.
More than 3 billion tablets and 1.3 billion softgel capsules will be produced annually at the Spaulding Avenue plant. One of the company’s top selling dietary supplement products, NUTRILITE Vitamin C Plus Extended Release, will be manufactured at the site, along with NUTRILITE Cal Mag D, NUTRILITE Natural B Complex, NUTRILITE Salmon Omega-3, NUTRILITE Natural Multi Carotene and others.
“Over the last 79 years, Nutrilite has grown from a Quonset hut in southern California to a best-in-class research, agribusiness, manufacturing, vitamin and dietary supplement organization," said Jim Siewertsen, vice president of Nutrilite operations. "The new Spaulding Avenue site is the next chapter in our rich history.”
The Michigan Economic Development Corporation approved a $1.6 million incentive from the Michigan Strategic Fund to support construction of the facility. Ada Township approved an industrial facilities exemption for the facility as well. The Ada Township tax abatement is for 12 years, the maximum length allowed by the State of Michigan. The Right Place, a western Michigan economic development organization, provided Amway with support in securing those incentives.
Nutritional product sales accounted for 46 percent of Amway sales last year. Alticor, parent company to Amway, reported 2012 sales of $11.3 billion.
Global manufacturing expansion
Amway plans a $375 million manufacturing and R&D expansion globally, including four facilities in the U.S., a new manufacturing facility in India and second sites in both China and Vietnam.
The four U.S. sites, including the Spaulding facility, support the Nutrilite brand. Other U.S. facilities under construction include:
- A $24 million nutrition powder products plant at the company’s World Headquarters. The plant’s addition created 50 new jobs in Ada, Michigan. Construction was recently completed.
- A $42 million project in Buena Park, California, includes a new granulation facility to support tablet manufacturing, new research and development facilities and pilot laboratories; and a two-story professional office building. Construction is underway.
- A $38 million Nutrilite Botanical Concentrate processing plant in Quincy, Washington, which will process plants from the company’s nearby Trout Lake Farm sites. Construction is underway.
Groundbreaking for the $95 million manufacturing plant in Tamil Nadu, India is scheduled in 2013 with completion in 2015. Plans for a $20 million Amway manufacturing facility in Vietnam were released last month and construction is slated to begin later this year. In China, Amway will add a second manufacturing plant in Guangzhou. The $75 million facility is scheduled to be fully operational in 2016.
In addition, Amway is building a $10 million botanical research and experience center in Wuxi, China, near Shanghai, to integrate scientific knowledge used in product development with the historic use of traditional Asian plants.