The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Saturday, April 20, 1996               TAG: 9604200324
SECTION: BUSINESS                 PAGE: D1   EDITION: FINAL 
SOURCE: BY SUSIE STOUGHTON, STAFF WRITER 
                                             LENGTH: Medium:   54 lines

ALLIED COLLOIDS DEDICATES $28 MILLION PLANT EXPANSION THE FIRM ALSO SAYS IT WILL INVEST $106 MILLION MORE IN SUFFOLK OVER THE NEXT FIVE YEARS.

While dedicating a $28 million plant expansion Friday, Allied Colloids Inc. officials announced plans to invest $106 million more in Suffolk - the company's North American headquarters - over the next five years.

More than 100 additional workers are expected to be added after the next phase of expansion. The company plans to expand the existing facilities and build new production plants, storage facilities and state-of-the-art environmental systems.

The opening of the new acrylamide plant on Wilroy Road means the manufacturing facility no longer has to import raw materials from its parent company in Bradford, England. The company uses acrylamide to manufacture water-soluble chemicals sold to companies for uses such as pollution control, paper-making, water treatment and textile-printing. It's also used to make shampoos, skin creams and disposable diapers.

The plant is capable of producing 22 million pounds of acrylamide a year.

The company was sacrificing efficiency waiting for raw materials to be shipped from the United Kingdom or other parts of the United States, said David Almond, vice president for sales.

``We will achieve better efficiency by processing on site,'' he said.

The plant will begin producing acrylamide by June, he said.

Technology for the plant was developed by Mitsubishi Chemical Corp., which sent officials from its Tokyo headquarters to the dedication ceremony.

Safety and environmental protection were top priorities of the design. The plant operates continuously and is controlled by a state-of-the-art computer system. The new plant has its own wastewater treatment system and two back-up diesel generators.

Gov. George F. Allen came to laud the company's continued investment in the state's economy.

Allied Colloids could have chosen to build its original Suffolk plant anywhere in the world, he said.

``We are grateful that Allied Colloids found what it needed in Virginia - the right location, with the right policies and the right people,'' he said. ILLUSTRATION: [Color Photo]

MICHAEL KESTNER

The Virginian-Pilot

Gov. George F. Allen and Allied Colloids officials tour the

company's plant in Suffolk Friday. The facility no longer has to

import raw materials from its parent company in England.

by CNB