Lumsden acquisition a ‘critical part' of Fenner's future

MANHEIM, Pa.—Fenner Precision Polymers Inc., a Michelin company, has added to its metal belting portfolio with the recent acquisition of Lumsden Corp., a 45-year-old south-central Pennsylvania firm that specializes in industrial conveyor belting and wire cloth for the quarry, mining and food processing industries.

Lumsden also specializes in heat treating, mining, glass treating, printing and canning.

Terms of the acquisition, which closed Sept. 30, were not disclosed.

"Lumsden has grown steadily and has carved out solid market positions, but needs a broader strategic vision, additional resources and more technical knowledge to continue growing," said Brian Slingluff, vice president and general manager of Fenner Precision Polymers U.S. "Fenner, and more broadly, Michelin, offers all three of those elements. Part of Michelin's overarching strategy is to develop circular economy solutions through research partnerships, internal innovations and targeted acquisitions."

The purchase brings about 125 employees into the fold for Fenner and brings the total number of employees to about 1,000, according to Slingluff.

A staple in Lancaster, Pa., Lumsden will remain a part of the central Pennsylvania business economy while helping Fenner expand its portfolio in metal belting.

Lumsden maintains three locations in Lancaster within just a few miles of each other, with a total fabrication, warehousing and office space across the locations of about 65,000 square feet.

And Fenner's U.S. headquarters are not far from Lancaster in nearby Manheim.

"We are within 10 miles, and the proximity has made integration significantly easier," Slingluff said.

Both Fenner and Lumsden operate in the same vertical markets and take the "same approach to creating value for their customers, offering value-oriented belting products that deliver lower total cost of ownership of their customers."

"(Lumsden) has a very strong position in food and beverage, and they exist right next to applications that our current belts do very well in," Slingluff said. "It makes portfolio sales that much easier. They also have some unique product attributes that allow them to outperform others in similar applications. This is something that we think we can leverage globally."

Fenner has a number of brands related to polymers, metal and textile-based industries. Fenner's belts have applications in motion control and power transmission, and the company is agile enough to focus on customized niche applications for its customers.

Lumsden brings three major brand categories, including Hoyt Wire Cloth, Wiremation Conveyor Belting and Flexx Flow.

Hoyt belting typically is used in crushed stone, sand and gravel, concrete and asphalt, coal and recycling applications, while Wiremation is focused on food processing, heat treating, fiberglass, glass and steel conveyance.

Flexx Flow serves the food processing markets, similar to Wiremation, according to Lumsden.

Moving forward under Fenner, Lumsden belts and accessories will be "rolled up under the Fenner Precision Polymers portfolio of belting and high-value component solutions," according to Slingluff, with Fenner as the umbrella brand for all businesses, including Lumsden and Hoyt.

"Without question or reservation, this partnership is just the move we envisioned to take our business to the next level," Lumsden CEO Glenn Farrell said. "We've considered offers prior to this in the past, but always in the back of our mind was the thought of how ideal it would be to partner with Fenner, where we share the same location, similar markets and the simple fact that they are such a trusted industry leader."

The challenges entering 2022 are many, and they are compounding on themselves as a frustrating 2021 comes to a close—with all of its hiring and retention, supply chain and pricing problems in tow.

Like many other large companies, Fenner and Lumsden are operating in heavily constrained labor markets and are looking at creative routes to solve the problem.

"To address this, we have offered competitive earning opportunities, added bonuses in some cases and remain focused on career progression within our ranks to position our organization as a long-term career option for people," Slingluff said.

Fenner works closely with local placement services to provide opportunities for people in communities where English is not a first language, and they have thought outside the box in leveraging a diverse work force as a bridge to reach those demographics.

"We are also working closely with Michelin to expand capacity through innovation and technology, so we can grow sustainably—both in terms of reducing our environmental footprint and boosting our ability to remain competitive globally," Slingluff said. "It's part of Michelin's 'Michelin in Motion' strategy to invest in society beyond tires."

And there have been supply line hurdles at every long-haul turn and seaport docking.

"We have faced supply hurdles in every facet of our business, and our teams have met these challenges with remarkable results," he said. "The reality is that we will be living in this environment for a number of months. No one really knows how many.

"Our answer is to remain flexible, forecast inventory strategically, and provide our customers with options that can alleviate the short-term challenges while also providing both parties flexibility going forward."

Coordination with suppliers and customers is key, he said.

"Both have been very responsive and allowed us to manage through the cycle reasonably well, although not without some very real impacts," Slingluff said.

In the global market, Slingluff said it is too soon to tell how the recent rollback on tariffs on European Union steel and aluminum will affect the belting industry.

"We are hopeful and continue to monitor the situation, including global demand spikes and inflation," Slingluff said. "Fenner and Michelin welcome all efforts to strengthen critical infrastructure that keeps people and our businesses moving."

The prospect of a better business climate is on the horizon with the infrastructure bill, especially as it relates to the sand, crushed stone and gravel conveyance space. Whatever 2022 might bring, Fenner will look to Lumsden as a crucial part of its belting mission.

"Strong potential growth, market share gains and an opportunity to expand into new belting markets are all compelling reasons why Lumsden Corp. will play a critical role in our strategy," said Jack Krecek, divisional managing director for Fenner Precision Polymers. "Lumsden is not only a respected leader in the belting industry—and one that greatly adds to our product portfolio—it is also a longtime Lancaster institution.

"(Fenner) Precision Polymers is looking forward to adding the Lumsden operations to our portfolio of businesses in Lancaster County and we warmly welcome all Lumsden employees to our family."

Other Fenner Precision Polymers subsidiaries include Fenner Drives, Fenner Precision, James Dawson, Fabri Cote and MAV S.p.A.