Henkel, a producer of adhesives, sealants and functional coatings, and manufacturer of well-known consumer brands, broke ground on a 35,000 square foot expansion of its production facility in Brandon, South Dakota.
The expanded facility will bring updated manufacturing capabilities and allow Henkel to increase production of thermal interface materials used to manufacture high-performance electronics and electric vehicles (EV).
"The investment in our Brandon facility is a key part of our commitment to create value through our operations and supply chain infrastructure to efficiently meet the growing demand of our customers," said Christof Becker, Senior Vice President Operations and Supply Chain, Henkel Americas. "The expansion demonstrates our ambition to implement advanced production technologies and capabilities across our manufacturing network. We're thankful for the ongoing support and partnership from the City of Brandon, Brandon Development Foundation, and the State of South Dakota as we pursue our strategy of purposeful growth."
Henkel's Brandon facility manufactures thermal interface material adhesives under the brands Loctite and Bergquist, which are used in the electronics and automotive industry, with a specific focus on next generation electric car capabilities and components. With an increasing demand on domestic electric vehicle manufacturing, thermal interface materials become an essential part of the supply chain, supporting safe and efficient battery performance during charging and discharging cycles.
As part of Henkel's commitment to build value through comprehensive sustainable operations strategies, the company will pursue LEED certification for both the expansion and existing facility. LEED (Leadership in Energy and Environmental Design) is the most widely used green building rating system in the world and promotes the use of efficient building strategies that are good for people as well as the environment.
The company's facility in Brandon was built in 2009, covers 36,000 square feet, and employs 120 employees. The expansion will create approximately 20 new jobs and is expected to be operational by the fourth quarter of 2023. Henkel's $30 million investment in Brandon was initially announced in October 2021.