A Quincy, Illinois-based company is planning a $6.5 million redevelopment project that will transform a warehouse in Irvington into a recycling facility.
Quincy Recycle acquired a 121,250-square-foot warehouse at 258 S. Kitley Ave. in Kitley Industrial Park early this month for $4 million.
The company, which operates six recycling facilities in five Midwestern states, plans to spend more than $2.5 million to upgrade the 48-year-old building and install equipment needed to operate the plant.
Quincy Recycle plans to occupy about 81,000 square feet in the building. Existing tenant Distributor Service Inc. will continue to occupy the other third of the facility.
Phil Hildebrand, vice president of finance and administration for Quincy Recycle, said the Indianapolis plant should begin operations by the end of the year. The facility should employ about 20 people when it begins operating at full capacity.
The property's seller, an affiliate of Irvine, California-based Red Tail Investments, acquired the entire three-building Kitley Industrial Park property for $7.6 million in September 2017 from Minneapolis-based Biynah Industrial Partners and Baltimore-based Alex. Brown Realty. Alex. Brown had been involved in the ownership of the park since 2007.
Kitley Industrial Park, constructed from 1965 to 1970, includes three buildings totaling 363,750 square feet. It provides quick access to Interstate 465 and is equipped with rail access.
Hildebrand said the CSX rail spur, which runs right next to the building, was critical to making the acquisition.
The company, founded in1974, receives paper and plastic waste from manufacturers and bales it, shreds it or rolls it to be sold and shipped to processors in the Southeast and Southwest U.S. markets and Mexico.
Among the equipment going into the plant will be two industrial balers with feed conveyors, and a dual-shaft shredder.
The plant will service manufacturing clients in southern Indiana, southwest Ohio, and northern Kentucky.