Yulex Corp., a manufacturer of bio-based elastomer products derived from guayule, recently announced plans for an expansion in Chandler, Ariz.
To finance the project, the company closed on a $15 million private placement, led by Argonaut Private Equity.
The company will build a new production facility within the Lone Butte Industrial Park in Chandler. The park is part of the Gila River Indian Community, offering Yulex tax savings and Enterprise Zone Status.
The 5-acre site includes two large clear-span buildings totaling 60,000 square feet for production use and an office building for staff, according to the company. The site is expandable up to 20 acres.
The investment also will be used to ramp up Yulex's commercialization infrastructure by recruiting key executives in product development, marketing and engineering to the organization.
"We look forward to completing this significant expansion to our production capability and enabling Yulex to begin meeting the increasing demand for our elastomeric biomaterials," said Jeff Martin, president and CEO of Yulex. "Our expanded capability allows us to provide renewable high-performance materials for a variety of markets including consumer goods such as footwear, action sports gear, clothing, baby products, etc., as well as other industries such as medical devices, adhesives and resins."
Construction on the facility has begun. The company expects increased commercial production of guayule natural rubber and feedstocks for bioenergy to start by early 2012.
All Yulex products are derived from a desert plant called guayule that is grown in commercial farms throughout southern Arizona. The plant produces natural rubber and resins used in the manufacturing of products for the industrial, commercial and medical industries.
The company also produces cellulosic feedstocks, which are combusted to produce bioenergy for regional utilization.