Freudenberg-NOK to expand Indiana operation

MORRISTOWN, Ind.—Freudenberg-NOK Sealing Technologies will expand its automotive sealing facility in Morristown by 20,000 square feet in response to increased demand from the industry.

The expansion will create an estimated 75 new jobs and represents a $20 million investment during the next five years. The firm said in a June 11 news release that the move is still pending formal approval from all Indiana work force and incentive programs.

A groundbreaking date has not been finalized. The firm projects to begin construction within the next couple of months with the goal of occupying the new addition in early 2016.

The company employs 266 at Morristown, which produces 100 million components annually for both the general industry and automotive customers. Its core product lines include off-set seals, transmissions seals, fuel system seals, driveline seals and diaphragms made from rubber compounds.

Freudenberg-NOK's latest expansion comes on the heels of an $8.6 million investment at its Findlay, Ohio, facility—which just celebrated a groundbreaking ceremony for the project on June 19. The firm will add 43,000 square feet to the 50,000-sq.-ft. building and increase production by 25 percent. The Findlay facility produces about 185 million seals and related plastic components annually.

Recently the firm revealed that a new materials laboratory will be included in the Findlay expansion, accounting for 2,000 square feet.

“Like the Findlay expansion, this is an example of where our focus on lean systems, quality and technology is leading us to gain business and be very successful in the markets that we choose to serve,” Freudenberg-NOK President Theodore Duclos said. “As a company overall, we have a strategy to manufacture where our stuff is consumed. We're committed to manufacturing in the areas that we're in. Certainly these expansions show that we do what we say we're committed to.”

The expansion in Indiana is projected to increase production by 40 percent to 140 million pieces per year once fully operational—all focused on the facility's existing core product lines. The firm said Morristown produces 100 million components per year.

Morristown Plant Manager Stacy Flora said the plant is growing about 10 percent annually and is projected to continue that growth for the next few years. Duclos said Freudenberg-NOK is growing with, or in some cases faster, than the industry because it is gaining market share in certain areas.

“We ran out of space awhile ago, and we've held off as long as we possibly could,” Flora said. “We have new business coming as well as new equipment for 2016 as well as the coming years to support new programs that we have launching.”

The project will bring several additional rubber presses and specialized automated secondary equipment for assembly and quality inspections. Morristown utilizes all kinds of rubber materials to produce its automotive components. Flora said the facility customizes solutions catered to customer needs and specifications.

About 85 percent of Morristown's business focuses on the automotive industry, but he said the plant services the general industry through its diaphragm products for pump applications. The site is mostly focused on the U.S. market, exporting only about 10 percent of its product to Europe and China.

Freudenberg-NOK is a joint venture between Freudenberg and Co. in Germany and NOK Corp. in Japan. The firm produces advanced sealing technologies for a variety of markets such as automotive, aerospace, construction and agriculture, among others. Headquartered in Plymouth, Mich., the company operates more than 20 facilities in the Americas.