Swami Compounding setting up production shop in Georgia

WEST ROME, Ga.—A start-up manufacturer of semi-finished natural and synthetic rubber compounds soon will be opening its doors at a 110,000-sq.-ft. leased facility in West Rome.

Swami Compounding L.L.C. was incorporated as a custom rubber compounder in 2021 and expects to be operating in full production with one line by November. The company is owned by a group of executives and investors, led by Managing Partner Harry Patel, who has majority ownership. Patel comes from a chemical engineering and rubber compounding background, having previously worked for global polymer compounding firm Hexpol. Patel also had his own industry resale business, but the COVID-19 pandemic motivated him to start a manufacturing-focused business.

Patel has raised $8 million in total investments to help start Swami Compounding. When searching for a location, Patel centered on the Southeastern U.S.

He said West Rome and surrounding communities provided a range of benefits such as power, water and sewer infrastructure, a strong labor force and an existing building. The company also received logistical and financial support from the Georgia Department of Economic Development and the Rome Floyd County Development Authority. Patel had considered locations between Chattanooga, Tennessee and Atlanta.

"We saw a diverse group of manufacturers and rubber manufacturing specifically (in and around) West Rome," Patel said. "We felt it was best to look for an existing building we could renovate and move into because it would take less time to move in then to go through the process of getting permits for (a new build)."

Patel is interviewing for open managerial positions this summer, starting with a business development manager who will be responsible for growing sales. Recruiting for leadership positions in production, engineering, electrical and other areas will follow. Swami Compounding then will need an array of machinists and operators to round out its staff as well. Patel expects to hire around 100 employees within five years based on company projections across the full range of positions.

This growth will be a gradual process because Swami Compounding will start with one production line before the end of 2023. "We want to make sure (the strategic plan) works," Patel said.

A color mixing line will be one of the first modes of production implemented later this year, he added. All positions except for some sales professionals will operate onsite at the West Rome plant.

Patel admits that the timing of starting a manufacturing business in 2021 was difficult because of factors related to the pandemic. Inflation caused the price of just about everything needed by a start-up to skyrocket. The cost of many types of equipment and materials either have fallen or moderated, but remain noticeably higher than before 2020, according to Patel.

One of the other major challenges has been the delayed supply chain, which impacted equipment delivery and other tasks. Swami Compounding ordered all of its equipment in summer 2022 and it took several months to arrive as specified.

"Prices on some things were out of (control)," Patel said.

Equipment installation will begin in August at the new plant and can take up to 90 days before completion. Once the key management positions are in place, equipment operators and machinists will be hired to operate the first line.

Initial Swami Compounding "made-to-order" materials will be supplied to customers that manufacture conveyor belts, components for tire retreading, floor mats, windshield wipers and EPDM roofing, among others, Patel said. As the company further scales production, it will explore additional applications.

"We want to start small and build our reputation," he said. "I expect we can add and grow quickly, but we want to be smart about it."