Erdman, of Madison, has purchased property in Waunakee where it plans to build a 170,000-square-foot manufacturing and distribution plant that will house its Building Supply Group.

Exterior wall panels and other building elements such as doors and cabinets for health-care buildings will be manufactured at the plant at Uniek Drive and Prairie View Court. The building will be about 35 percent larger than the current plant, which is at 600 Marshall Drive. The project cost was not disclosed.

Kevin Even, Waunakee village engineer and interim administrator, said the plant has received all necessary village approvals for construction.

"Having them stay in the village was a bonus for Waunakee," he said.

Company officials said the new plant is expected to improve the company's material flow and handling by more than 50 percent. The plant also will feature automated drilling and other equipment that takes advantage of the latest computer technology.

Erdman will evaluate the need for more employees after the plant is completed next spring, said Renee Shaw, senior marketing communications specialist. The current plant has 49 employees.

Tom Platz, general manager of the Building Supply Group, said the plant will incorporate sustainable design features such as enhanced roof and wall insulation, use of natural daylight, efficient infrared heating and high-intensity lighting.

Erdman, a nearly 60-year-old Madison company with eight regional offices that specializes in planning and construction of medical buildings, was acquired earlier this year by Cogdell Spencer, a real estate investment trust in Charlotte, N.C.