Mohawk Industries announced plans Thursday for a $100 million expansion at the floor maker's existing vinyl floor cover manufacturing plant in Dalton, Ga.
The expansion will increase Mohawk's domestic hard surface production capacity, and create 200 new jobs.
The Dalton plant was formerly operated by Belgium luxury vinyl manufacturer IVC Group. Mohawk bought IVC last year for $1.2 billion and acquired IVC's Dalton plant in the process, bringing the state-of-the-art production facility and technology into Mohawk's hard surface portfolio.
Luxury vinyl flooring refers to nonwood, nonceramic plank and tile floor coverings which often mimic wood in terms of looks, and are increasingly tougher to distinguish from real wood flooring, thanks to innovations in design and production technology.
Luxury vinyl sales are the fastest-growing sector in the flooring industry right now, and Mohawk's stakes in vinyl and ceramics helped carry the publicly-traded company to four record-earning quarters last year. Mohawk is set to release its first quarter 2016 earnings next month.
Officials with the world's largest flooring maker indicated Thursday the company's hard surface sales are as strong as ever - even driving the commitment to expand on its Dalton facility.
"Combined with our industry-leading national distribution system, this expansion will provide our customers with the broadest product offering and the highest level of service in the LVT industry," Brian Carson, president of Mohawk Industries's Flooring North America segment said in a Thursday release.
The coming expansion also will bolster Mohawk's ability to produce WPC (wood-plastic composite) flooring products, a fast-growing subsector of the vinyl floor market. Wood-plastic composite flooring features more indoor-outdoor and water-resistant products.
Dalton-based USFloors was the first to roll out multi-layered, water-resistant vinyl flooring. Sales exploded, prompting other companies to follow suit.
Kemp Harr, publisher of Floor Focus magazine, said the expansion is needed to keep pace with the strong demand for luxury vinyl and WPC flooring,
"It makes sense that they expand into that area," he said.
According to data collected and compiled by Floor Focus Magazine and Market Insights LLC, hard surface sales made up roughly 35 percent of all floor covering sales in 2000. That same year, carpet and rug sales made up roughly 65 percent.
In 2015, hard surface sales had climbed to represent roughly 46 percent of flooring sales, while carpet and rug sales made up roughly 54 percent.
By 2020, Harr predicts hard and soft surface flooring will nearly split sales down the middle.
Harr said the growing trend of installing hard surface flooring in common areas in the home and in multi-family housing have helped grow luxury vinyl, even while carpet is still common in bedrooms and a high-value product, maintaining the balance.
"Price per square yard, (carpet) is still very high-value material," he said.
Mohawk officials said in Thursday's announcement they hope to have the Dalton plant operating at full capacity by the end of this year.
Gov. Nathan Deal, R-Ga., praised the expansion and investment.
"This is a great indicator of the strength of the carpet and floor covering industry," said Deal.
Chris Carr, commissioner of the Georgia Department of Economic Development, said "existing industry accounts for a major portion of the state's investment and job opportunities."
Contact staff writer Alex Green at agreen@timesfreepress.com or 423-757-6480.