REMICH, Luxembourg—CQLT SaarGummi Technologies S.a.r.l. is bolstering its manufacturing capabilities in North America and Asia by adding four plants worldwide, each set to be operational in mid-2015.
Each facility's primary focus is EPDM and thermoplastic sealing systems for the automotive industry. SaarGummi said its automotive business accounts for about 90 percent of its sales, which were about $537.3 million for its latest fiscal year. The remaining 10 percent comes from industrial applications.
The firm's total investment for 2014 is about $67.1 million, but that is for all 2014 upgrades ranging from facilities, to capital upgrades and other projects. The firm would not disclose how much it had invested exclusively in the four plants.
“We continue to focus on becoming a global, international sealing supplier while we're executing CQLT's long-term strategy of growth and implementation of our technical innovations,” CEO Larry Johnson said. “And it really shows CQLT's commitment and support of SaarGummi.”
SaarGummi Group eventually will create more than 1,600 jobs worldwide when the four facilities are operational. The firm currently employs about 4,000 at 14 production plants and three technical centers in Europe, North America, South America and Asia.
“It's a very busy time for us, there's no question about it,” Johnson said. “It is very exciting to be on a positive growth strategy and to have a shareholder that's been very supportive and help us achieve these objectives.”
The firm will open one facility in North America—located in Saltillo, Mexico. SaarGummi will lease a building of about 118,000 square feet for automotive production and create about 150-200 jobs. Johnson said the plant's estimated timeframe for operation is the end of 2014, beginning of 2015. He said the firm is presently finalizing negotiations.
SaarGummi will open a similar site in Ahmedabad, India, and is targeting Sept. 29 for the grand opening of the new facility, which is about 118,000 square feet. Michael Lorig—vice CEO and chief operating officer—said it will consist of about four extrusion lines and have a mixing plant onsite, which will support all of the facility's products except special chemicals.
The company projects to create between 300 and 400 jobs at the plant. It will begin equipping the building in October and hopes to have it operational in May 2015.