Dayco achieves success via expansion, acquisition

TROY, Mich.—Two aspects of Dayco Products L.L.C.'s growth model, geographic expansion and strategic acquisitions, are paying nice dividends.

Dayco wants to globalize its operation “in order to provide a seamless service experience, from manufacturing to delivery to technical support” for the firm's customers, according to CEO John Bohenick.

While the company has focused primarily on internal growth and improvement over the last year, it has grown significantly by adding plants via acquisitions over the last few years.

During that period, it strengthened its damper, tensioner and idler pulley manufacturing capabilities worldwide for both its aftermarket and original equipment businesses with the purchase of Metavation L.L.C. in Southfield, Mich.; Precision Parts, located in Australia; and Nytron Group, a Brazilian-based manufacturer.

Dayco's three acquisitions have expanded the firm's global reach, increased capacity and bolstered the production end of its operation in several regions, including North America, China and India.

It has focused on increasing its geographic presence further with significant investments in new plants in China, Poland and Mexico, Bohenick said. The firm also improved and upgraded its Williston, S.C., factory in 2013, turning it into its aftermarket and original equipment belt center in North America.

“Today we have 50 facilities in 18 countries,” he said. “We see continued growth in our traditional markets of North America and Europe, and are focused on accelerated growth in China, South America, India, East and Central Europe, Russia, the Middle East and Africa.”

The Tychy, Poland, plant was completed in 2014. It produces pulleys and dampers for OEMs in Europe.

Its newest damper, idler and tensioner manufacturing plant in Suzhou, China, “will further our growth initiatives in this market,” Bohenick said. The 151,000-sq.-ft. factory handles manufacturing, engineering and aftermarket distribution functions in the country.

Its business outside of Western Europe also continues to grow, he said. “Since 2013, we have experienced 20 percent growth in central and eastern Europe.” The firm has had more than a 35 percent growth spurt in Europe, Russia, the Middle East and Africa, combined, since 2013, he said.

“Frankly,” Bohenick said, “our brand recognition exceeds our presence in the industrial market. We are well positioned in the heavy truck segment and have had substantial industrial original equipment success.

“Industrial general market distributors have a preference for high quality brands, and that should always benefit Dayco. We see opportunities to grow through new products, new customers and potential acquisitions.”