Hospital Central Services Inc. of Allentown next month will begin a $10.5 million plant expansion. Eventually, 40 more employees will be hired.
The linen service provider operates a laundry facility in the city and serves hospitals, ambulatory care centers and surgicenters, Dan Marcante, vice president and chief operating officer of Hospital Central Services Inc. & Affiliates Laundry and Linen Services, said this morning.
The company is looking to expand capacity and modernize the manual operations of its plant to serve more hospitals with lower operating costs, Peter Castagna, president and CEO, Hospital Central Services Inc. & Affiliates, said this morning.
“We are just waiting for the DEP [state Department of Environmental Protection] permits to start construction of the stormwater management systems,” Marcante said. “We are hoping to have the building under roof by June.”
The company decided to expand to lower operating costs and put itself in a better position to compete and add capacity, he said.
The plant is more than 40 years old and, until now, the company has not been in a position to upgrade and install new equipment, such as automated material handling systems, Marcante said.
“We will be able to reduce our energy consumption while increasing capacity,” he said.
The company will add 21,000 square feet to its 52,000 square feet and add about 40 employees when it reaches full capacity, Marcante said. The plant now employs 180.
Hospital Central Services worked with the Lehigh Valley Economic Development Corp., the city of Allentown and the state Governor’s Action Team (a group of economic development professionals) to acquire funding, Marcante said.
The company received a grant from the Governor’s Action Team and a loan of more than $2 million from the Pennsylvania Industrial Development Authority for the project.
“It’s the largest project we’ve done dollar-wise within our history,” Marcante said.
Serfass Construction Co. Inc. of North Whitehall Township is handling the construction management and Barry Isett & Associates Inc. of Upper Macungie Township is the engineer for the project, according to Marie Clemens, Hospital Central Services corporate director of communications.