Elkhart company to expand after landing automotive contract

by Ed Ernstes (ernstes@wsbt.com)

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The Kem Krest Corporation is looking to expand its Elkhart operations after being awarded a $10 million contract with Hyundai Motors

The Kem Krest Corporation in Elkhart is looking to expand after being awarded a $10 million contract with Hyundai Motors. (WSBT photo)

Story Created: Nov 12, 2008 at 3:38 PM EST

Story Updated: Nov 16, 2008 at 2:00 PM EST

ELKHART — A downturn in the economy has had an adverse effect on businesses around the area. Many affected are related to the RV or automotive industry.

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Some companies have closed or are scaling back production, along with employees.

But one Elkhart company with ties to the automotive business is doing just the opposite. They actually need more room for expansion.

The Kem Krest Corporation (KKC) serves as a distribution center for automakers. They warehouse and distribute readymade products for service centers for GM and Ford.

KKC recently landed a $10 million contract with Hyundai Motors to do the same — as well as provide the company with distribution, supply chain management and marketing assistance.

"For Hyundai, we'll be managing their supply chain for all their service chemicals," explained Amish Shah of KKC. "So we'll be supplying all the dealerships across the country with the products they use to service Hyundai vehicles."

KKC is currently leasing space in Elkhart for its operations.

“The excitement with Hyundai is it's a growing company as their volumes increase. We too need to increase infrastructures including facilities and people. So this can mean new job growth for Elkhart County and the community," added Shah.

The new multi-million dollar contract not only bodes well for the future of the company, but it gives employees a piece of mind about their future.

“Its very encouraging. I am looking forward to this,” said KKC employee Mike Kemper. “The job security is really key and important to me. I just moved here from Ohio two years ago."

“Oh, it’s great having the Hyundai business,” added Deb Raffel, KKC worker. “We live in Elkhart County, so we know what the automotive is going through plus what housing is going through. It’s not good news. We're very excited."

Currently there are 65 workers at the Elkhart operation. They plan to hire more people but are unsure how many or when that will happen. The company is looking to either build or lease an expanded facility in Elkhart or in neighboring states.

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