Lower Swatara Township-based Phoenix Contact USA has started on a major expansion project that will add 117,000 square feet to its Dauphin County complex by November 2013, spokeswoman Molly McGowan said.
The electronic components manufacturer and subsidiary of German company Phoenix Contact GmbH & Co. has hired nearly 200 people in the last two years — the majority at its Lower Swatara Township facility — and is in need of more space, McGowan said.
“(We) have simply run out of room for all of our employees,” she said, adding that about 50 employees have been working out of leased space across the street.
The current complex on Fulling Mill Road is about 240,000 square feet.
The company has seen year-to-date sales growth of about 12 percent compared with 2011, McGowan said. Its sales increased by 16 percent last year.
“We also needed to increase our manufacturing capacity to meet the demands for new products being developed here in Harrisburg,” she said. “The products we manufacture here are primarily for customers in North America, but are also sold throughout the world.”
The company makes connectors and other components for industrial machinery.
Phoenix Contact is focused on bringing its manufacturing closer to the customer, she said, which will provide a faster turnaround and meet specific customer demands more quickly.
Kinsley Construction Inc., which is based in York Township, is the general contractor on the project. The expansion will include about 50,000 square feet of production and support space and 50,000 square feet of office space for product management and development activities.
The remainder will be additions to training laboratories and other support services.
The cost of the project was not disclosed. Earlier this year, the company’s director of U.S. operations, Doug Ferguson, said the additional facility space would cost between $18 million and $24 million.
“It’s still in that range,” McGowan said.