A healthy 2009 has driven lubricants, chemicals and coolants supplier Kost USA to plan an approximately $10 million expansion, moving most of its production into a roomier facility.
Kost USA owner and president Tom Overdeck said it is acquiring about 11 acres and one 150,000 square foot building on the former Riemeier Lumber Co. site in the Bond Hill area of Cincinnati. Kost will relocate 30 existing employees from its headquarters in Mason and from its production facility on the Ohio River. The company will add about 10 new jobs at the new facility, mainly corporate and plant operator positions. Kost has targeted May 1 of next year as the startup date at the Bond Hill location.
Quite frankly, we have outgrown our capabilities, he told Lube Report. Fundamentally, we need the new facility just to support our growth. Beyond that, the expansion is clearly bringing additional capabilities to what we have. Some of that actually pertains more to our more specialty products that we will have more focus on, and the new facility will support that.
He noted that the site offers good access to transportation, including a railroad and major highways. In addition, he pointed out that the facilitys high ceilings will make it possible for Kost to put a lot of its storage tanks indoors.
Steve Overdeck, vice president of sales and operation, said Kost will keep a small portion of the existing Ohio River facility in operation, with the new site handling most of the companys production. It will be a mix of those – probably 90 percent from the new facility and 10 percent of the old facility will comprise our full production.
He noted that Kost has primarily been a bulk business. With this expansion, were going to be able to do a lot more packaging, and to do some toll blending. We will also be getting into the diesel exhaust fluid market, and were also getting into eventually some retail marketplaces.
Diversification in the product its offers and markets it serves has been a key to Kosts success this year, suggested Tom Overdeck. We seem to be in a lot of different areas, he continued. If we were focused in just one area, we might be struggling.
Founded by Tom Overdeck in 1985, Kost USA manufactures and markets more than 100 chemicals, coolants and lubricants, and serves diverse industries throughout the United States. The companys lubricants include compressor and gear oils, grease, hydraulic fluids, industrial fluids, metalworking fluids, transmission fluids and motor oils.