WINSTON-SALEM, NC-Memphis-based Conwood Co. LLC is planning to construct a 88,000-sf manufacturing facility adjacent to the existing Taylor Brothers facility on Stratford Road. The new facility will be a freestanding structure.

Conwood, which was acquired by locally based Reynolds American Inc. in May, is the second largest manufacturer of smokeless tobacco in the US. The new facility will provide additional manufacturing capacity to meet the growing smokeless tobacco market. Reynolds American Inc. spokeswoman tells GlobeSt.com that the company plans to spend $30 million on construction of the new facility and equipment during 2007. Cost figures for 2008 have not yet been determined because final investment in equipment will be determined by its desired level of production.

"The new plant will enable use to increase productivity and flexibility," she says. "If demand for product escalates, then we'll add more equipment."

Grading of the site for the new building will begin immediately with construction expected to be completed in the first quarter 2008. Production at the plant, which will employ up to 100 people, is expected to begin in the first half of 2008. I.L. Long Construction is the general contractor on the project.

"We are investing in both the future of the smokeless tobacco category and in the future of Winston-Sale, a classic win-win opportunity," says Conwood president and CEO Bill Rosson.