Armstrong World Industries will spend up to $35 million to build a plant in West Virginia to make mineral wool for its acoustical ceiling tiles.
The project in Millwood, on the Ohio River, was announced Friday by West Virginia Gov. Joe Manchin.
The 30,000-square-foot plant in Jackson County is due to open in mid-2012, creating 40 to 45 jobs.
The Millwood site will be the first mineral-wool plant for Armstrong.
"It's driven by the fact that two key mineral-wool manufacturers have ceased operations in the last five years," said Beth Riley, spokeswoman for Lancaster-based Armstrong.
"So this a strategic move to ensure supply of a critical material," she said.
According to the governor's office, Armstrong picked Millwood for two reasons.
The area offers competitive electricity rates plus a central location for raw material suppliers and several Armstrong ceiling-tile plants.
Those include ceiling-tile plants in Marietta, Beaver Falls and Hilliard, Ohio.
Armstrong will be eligible for several state economic-development assistance programs, including job-training dollars and tax incentives.
The amounts will be based on the number of jobs created by Armstrong and the size of its investment, said Matt Turner, a spokesman for Manchin.
Friday's announcement marks the second major mid-Atlantic investment for Armstrong to be disclosed in six months.
In September, the company unveiled plans to spend $7.8 million to expand its Thompsontown cabinetmaking plant, so it could absorb production done in Auburn, Neb.
Armstrong also has a $25 million upgrade of its Lancaster resilient flooring plant under way, as it converts the facility into production of a cushioned product.
However, Armstrong also has eliminated hundreds of production jobs across North America during the recession to adjust its work force to lower demand.